Correlation Between Jinhe Biotechnology and Inspur Software
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Inspur Software Co, you can compare the effects of market volatilities on Jinhe Biotechnology 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 Jinhe Biotechnology with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Inspur Software.
Diversification Opportunities for Jinhe Biotechnology and Inspur Software
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Inspur is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology i.e., Jinhe Biotechnology and Inspur Software go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Inspur Software
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.96 times more return on investment than Inspur Software. However, Jinhe Biotechnology Co is 1.04 times less risky than Inspur Software. It trades about 0.0 of its potential returns per unit of risk. Inspur Software Co is currently generating about -0.05 per unit of risk. If you would invest 446.00 in Jinhe Biotechnology Co on November 6, 2024 and sell it today you would lose (10.00) from holding Jinhe Biotechnology Co or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Inspur Software Co
Performance |
| Timeline |
| Jinhe Biotechnology |
| Inspur Software |
Jinhe Biotechnology and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Inspur Software
The main advantage of trading using opposite Jinhe Biotechnology and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology 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.| Jinhe Biotechnology vs. Bosera CMSK Industrial | Jinhe Biotechnology vs. Universal Scientific Industrial | Jinhe Biotechnology vs. JCHX Mining Management | Jinhe Biotechnology vs. Sinomach Automobile Co |
| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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