Correlation Between Niutech Environment and ISoftStone Information
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By analyzing existing cross correlation between Niutech Environment Technology and iSoftStone Information Technology, you can compare the effects of market volatilities on Niutech Environment 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 Niutech Environment with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and ISoftStone Information.
Diversification Opportunities for Niutech Environment and ISoftStone Information
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Niutech and ISoftStone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment 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 Niutech Environment 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 Niutech Environment 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 Niutech Environment i.e., Niutech Environment and ISoftStone Information go up and down completely randomly.
Pair Corralation between Niutech Environment and ISoftStone Information
Assuming the 90 days trading horizon Niutech Environment Technology is expected to under-perform the ISoftStone Information. But the stock apears to be less risky and, when comparing its historical volatility, Niutech Environment Technology is 1.7 times less risky than ISoftStone Information. The stock trades about -0.02 of its potential returns per unit of risk. The iSoftStone Information Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,505 in iSoftStone Information Technology on December 4, 2024 and sell it today you would earn a total of 3,976 from holding iSoftStone Information Technology or generate 158.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Niutech Environment Technology vs. iSoftStone Information Technol
Performance |
| Timeline |
| Niutech Environment |
| iSoftStone Information |
Niutech Environment and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and ISoftStone Information
The main advantage of trading using opposite Niutech Environment and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment 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.| Niutech Environment vs. Ningbo Kangqiang Electronics | Niutech Environment vs. Jiangsu Jinling Sports | Niutech Environment vs. Chongqing Shunbo Aluminum | Niutech Environment vs. Goke Microelectronics Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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