Correlation Between Guangzhou Jinyi and Inspur Software
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Inspur Software Co, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Guangzhou Jinyi with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Inspur Software.
Diversification Opportunities for Guangzhou Jinyi and Inspur Software
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Inspur is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Guangzhou Jinyi 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 Guangzhou Jinyi Media 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 Guangzhou Jinyi i.e., Guangzhou Jinyi and Inspur Software go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Inspur Software
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 0.8 times more return on investment than Inspur Software. However, Guangzhou Jinyi Media is 1.25 times less risky than Inspur Software. It trades about 0.05 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.02 per unit of risk. If you would invest 715.00 in Guangzhou Jinyi Media on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Guangzhou Jinyi Media or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Inspur Software Co
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Inspur Software |
Guangzhou Jinyi and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Inspur Software
The main advantage of trading using opposite Guangzhou Jinyi and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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.| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi vs. Loctek Ergonomic Technology |
| Inspur Software vs. Agricultural Bank of | Inspur Software vs. China Construction Bank | Inspur Software vs. Postal Savings Bank | Inspur Software vs. Bank of Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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