Correlation Between Threes Company and ISoftStone Information
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By analyzing existing cross correlation between Threes Company Media and iSoftStone Information Technology, you can compare the effects of market volatilities on Threes Company 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 Threes Company with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and ISoftStone Information.
Diversification Opportunities for Threes Company and ISoftStone Information
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Threes and ISoftStone is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Threes Company 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 Threes Company Media 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 Threes Company i.e., Threes Company and ISoftStone Information go up and down completely randomly.
Pair Corralation between Threes Company and ISoftStone Information
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the ISoftStone Information. In addition to that, Threes Company is 1.16 times more volatile than iSoftStone Information Technology. It trades about -0.21 of its total potential returns per unit of risk. iSoftStone Information Technology is currently generating about -0.09 per unit of volatility. If you would invest 6,091 in iSoftStone Information Technology on October 20, 2024 and sell it today you would lose (448.00) from holding iSoftStone Information Technology or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. iSoftStone Information Technol
Performance |
| Timeline |
| Threes Company |
| iSoftStone Information |
Threes Company and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and ISoftStone Information
The main advantage of trading using opposite Threes Company and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company 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.| Threes Company vs. Success Electronics | Threes Company vs. Fuzhou Rockchip Electronics | Threes Company vs. Integrated Electronic Systems | Threes Company vs. Xinya Electronic Co |
| ISoftStone Information vs. JiShi Media Co | ISoftStone Information vs. Bus Online Co | ISoftStone Information vs. Beijing Enlight Media | ISoftStone Information vs. Threes Company Media |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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