Correlation Between JiShi Media and ISoftStone Information
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By analyzing existing cross correlation between JiShi Media Co and iSoftStone Information Technology, you can compare the effects of market volatilities on JiShi Media 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 JiShi Media with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and ISoftStone Information.
Diversification Opportunities for JiShi Media and ISoftStone Information
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JiShi and ISoftStone is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and JiShi Media 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 JiShi Media Co 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 JiShi Media i.e., JiShi Media and ISoftStone Information go up and down completely randomly.
Pair Corralation between JiShi Media and ISoftStone Information
Assuming the 90 days trading horizon JiShi Media Co is expected to under-perform the ISoftStone Information. But the stock apears to be less risky and, when comparing its historical volatility, JiShi Media Co is 1.02 times less risky than ISoftStone Information. The stock trades about -0.21 of its potential returns per unit of risk. The iSoftStone Information Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 5,526 in iSoftStone Information Technology on November 2, 2024 and sell it today you would lose (158.00) from holding iSoftStone Information Technology or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. iSoftStone Information Technol
Performance |
| Timeline |
| JiShi Media |
| iSoftStone Information |
JiShi Media and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and ISoftStone Information
The main advantage of trading using opposite JiShi Media and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media 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.| JiShi Media vs. Chengdu Xingrong Investment | JiShi Media vs. Shanghai Material Trading | JiShi Media vs. ROPEOK Technology Group | JiShi Media vs. Cultural Investment Holdings |
| ISoftStone Information vs. China State Construction | ISoftStone Information vs. Poly Real Estate | ISoftStone Information vs. China Vanke Co | ISoftStone Information vs. China Merchants Shekou |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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