Correlation Between Bohai Leasing and Inspur Software
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By analyzing existing cross correlation between Bohai Leasing Co and Inspur Software Co, you can compare the effects of market volatilities on Bohai Leasing and Inspur Software 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 Bohai Leasing with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Inspur Software.
Diversification Opportunities for Bohai Leasing and Inspur Software
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bohai and Inspur is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Inspur Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspur Software has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Inspur Software go up and down completely randomly.
Pair Corralation between Bohai Leasing and Inspur Software
Assuming the 90 days trading horizon Bohai Leasing Co is expected to under-perform the Inspur Software. In addition to that, Bohai Leasing is 1.34 times more volatile than Inspur Software Co. It trades about -0.13 of its total potential returns per unit of risk. Inspur Software Co is currently generating about -0.05 per unit of volatility. If you would invest 1,645 in Inspur Software Co on November 6, 2024 and sell it today you would lose (166.00) from holding Inspur Software Co or give up 10.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Inspur Software Co
Performance |
| Timeline |
| Bohai Leasing |
| Inspur Software |
Bohai Leasing and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Inspur Software
The main advantage of trading using opposite Bohai Leasing and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Inspur Software 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 Inspur Software will offset losses from the drop in Inspur Software's long position.| Bohai Leasing vs. Gansu Huangtai Wine marketing | Bohai Leasing vs. Fangda Special Steel | Bohai Leasing vs. Bengang Steel Plates | Bohai Leasing vs. Citic Guoan Wine |
| Inspur Software vs. Jiangsu Jinling Sports | Inspur Software vs. Industrial Bank Co | Inspur Software vs. Guosheng Financial Holding | Inspur Software vs. Lecron Energy Saving |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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