Correlation Between Anhui Jianghuai and Inspur Software
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Inspur Software Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Inspur Software.
Diversification Opportunities for Anhui Jianghuai and Inspur Software
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Inspur is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Inspur Software go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Inspur Software
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.27 times more return on investment than Inspur Software. However, Anhui Jianghuai is 1.27 times more volatile than Inspur Software Co. It trades about 0.07 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.01 per unit of risk. If you would invest 1,690 in Anhui Jianghuai Automobile on November 2, 2024 and sell it today you would earn a total of 2,399 from holding Anhui Jianghuai Automobile or generate 141.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Inspur Software Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Inspur Software |
Anhui Jianghuai and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Inspur Software
The main advantage of trading using opposite Anhui Jianghuai and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Changchun BCHT Biotechnology | Anhui Jianghuai vs. Beijing Jiaman Dress | Anhui Jianghuai vs. Jiangsu Jinling Sports | Anhui Jianghuai vs. China Sports Industry |
| Inspur Software vs. Xinjiang Baodi Mining | Inspur Software vs. Hainan Mining Co | Inspur Software vs. Guangdong Silvere Sci | Inspur Software vs. Hunan Investment Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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