Correlation Between Yunnan Bowin and ISoftStone Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yunnan Bowin Technology and iSoftStone Information Technology, you can compare the effects of market volatilities on Yunnan Bowin and ISoftStone Information and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yunnan Bowin with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Bowin and ISoftStone Information.
Diversification Opportunities for Yunnan Bowin and ISoftStone Information
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and ISoftStone is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Bowin Technology and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Yunnan Bowin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yunnan Bowin Technology are associated (or correlated) with ISoftStone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSoftStone Information has no effect on the direction of Yunnan Bowin i.e., Yunnan Bowin and ISoftStone Information go up and down completely randomly.
Pair Corralation between Yunnan Bowin and ISoftStone Information
Assuming the 90 days trading horizon Yunnan Bowin is expected to generate 8.45 times less return on investment than ISoftStone Information. But when comparing it to its historical volatility, Yunnan Bowin Technology is 2.09 times less risky than ISoftStone Information. It trades about 0.02 of its potential returns per unit of risk. iSoftStone Information Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,274 in iSoftStone Information Technology on September 12, 2024 and sell it today you would earn a total of 4,344 from holding iSoftStone Information Technology or generate 191.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Bowin Technology vs. iSoftStone Information Technol
Performance |
| Timeline |
| Yunnan Bowin Technology |
| iSoftStone Information |
Yunnan Bowin and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Bowin and ISoftStone Information
The main advantage of trading using opposite Yunnan Bowin and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Bowin position performs unexpectedly, ISoftStone Information can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ISoftStone Information will offset losses from the drop in ISoftStone Information's long position.| Yunnan Bowin vs. PKU HealthCare Corp | Yunnan Bowin vs. Dezhan HealthCare Co | Yunnan Bowin vs. Zhongshan Public Utilities | Yunnan Bowin vs. Fujian Newland Computer |
| ISoftStone Information vs. Gansu Jiu Steel | ISoftStone Information vs. Shandong Mining Machinery | ISoftStone Information vs. Aba Chemicals Corp | ISoftStone Information vs. BlueFocus Communication Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |