Correlation Between Changsha Jingjia and Inspur Software
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By analyzing existing cross correlation between Changsha Jingjia Microelectronics and Inspur Software Co, you can compare the effects of market volatilities on Changsha Jingjia 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 Changsha Jingjia with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha Jingjia and Inspur Software.
Diversification Opportunities for Changsha Jingjia and Inspur Software
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changsha and Inspur is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Changsha Jingjia Microelectron and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Changsha Jingjia 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 Changsha Jingjia Microelectronics 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 Changsha Jingjia i.e., Changsha Jingjia and Inspur Software go up and down completely randomly.
Pair Corralation between Changsha Jingjia and Inspur Software
Assuming the 90 days trading horizon Changsha Jingjia Microelectronics is expected to under-perform the Inspur Software. In addition to that, Changsha Jingjia is 1.2 times more volatile than Inspur Software Co. It trades about -0.32 of its total potential returns per unit of risk. Inspur Software Co is currently generating about -0.02 per unit of volatility. If you would invest 1,504 in Inspur Software Co on October 30, 2024 and sell it today you would lose (25.00) from holding Inspur Software Co or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Changsha Jingjia Microelectron vs. Inspur Software Co
Performance |
| Timeline |
| Changsha Jingjia Mic |
| Inspur Software |
Changsha Jingjia and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha Jingjia and Inspur Software
The main advantage of trading using opposite Changsha Jingjia and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha Jingjia 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.| Changsha Jingjia vs. TongFu Microelectronics Co | Changsha Jingjia vs. Epoxy Base Electronic | Changsha Jingjia vs. Guangdong Ellington Electronics | Changsha Jingjia vs. Dongnan Electronics Co |
| Inspur Software vs. Bank of China | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. PetroChina Co Ltd | 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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