Correlation Between APT Medical and ISoftStone Information
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By analyzing existing cross correlation between APT Medical and iSoftStone Information Technology, you can compare the effects of market volatilities on APT Medical 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 APT Medical with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and ISoftStone Information.
Diversification Opportunities for APT Medical and ISoftStone Information
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APT and ISoftStone is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and APT Medical 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 APT Medical 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 APT Medical i.e., APT Medical and ISoftStone Information go up and down completely randomly.
Pair Corralation between APT Medical and ISoftStone Information
Assuming the 90 days trading horizon APT Medical is expected to under-perform the ISoftStone Information. But the stock apears to be less risky and, when comparing its historical volatility, APT Medical is 2.83 times less risky than ISoftStone Information. The stock trades about -0.09 of its potential returns per unit of risk. The iSoftStone Information Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 6,010 in iSoftStone Information Technology on November 29, 2024 and sell it today you would earn a total of 1,053 from holding iSoftStone Information Technology or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. iSoftStone Information Technol
Performance |
| Timeline |
| APT Medical |
| iSoftStone Information |
APT Medical and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and ISoftStone Information
The main advantage of trading using opposite APT Medical and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical 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.| APT Medical vs. HMTNew Technical | APT Medical vs. Digiwin Software Co | APT Medical vs. Eyebright Medical Technology | APT Medical vs. Zoy Home Furnishing |
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 CEOs Directory module to screen CEOs from public companies around the world.
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