Correlation Between Guocheng Mining and Inspur Software
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By analyzing existing cross correlation between Guocheng Mining Co and Inspur Software Co, you can compare the effects of market volatilities on Guocheng Mining 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 Guocheng Mining with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Inspur Software.
Diversification Opportunities for Guocheng Mining and Inspur Software
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and Inspur is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining 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 Guocheng Mining 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 Guocheng Mining 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 Guocheng Mining i.e., Guocheng Mining and Inspur Software go up and down completely randomly.
Pair Corralation between Guocheng Mining and Inspur Software
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Inspur Software. In addition to that, Guocheng Mining is 1.72 times more volatile than Inspur Software Co. It trades about -0.08 of its total potential returns per unit of risk. Inspur Software Co is currently generating about 0.03 per unit of volatility. If you would invest 1,509 in Inspur Software Co on September 29, 2024 and sell it today you would earn a total of 17.00 from holding Inspur Software Co or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Inspur Software Co
Performance |
| Timeline |
| Guocheng Mining |
| Inspur Software |
Guocheng Mining and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Inspur Software
The main advantage of trading using opposite Guocheng Mining and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining 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.| Guocheng Mining vs. Changchun UP Optotech | Guocheng Mining vs. Dhc Software Co | Guocheng Mining vs. Sihui Fuji Electronics | Guocheng Mining vs. HUAQIN TECHNOLOGY LTD |
| Inspur Software vs. Marssenger Kitchenware Co | Inspur Software vs. Shaanxi Construction Machinery | Inspur Software vs. Senci Electric Machinery | Inspur Software vs. Nanxing Furniture Machinery |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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