Correlation Between Inspur Software and Shenwu Energy
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By analyzing existing cross correlation between Inspur Software Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Inspur Software and Shenwu Energy 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 Inspur Software with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Shenwu Energy.
Diversification Opportunities for Inspur Software and Shenwu Energy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inspur and Shenwu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Inspur Software 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 Inspur Software Co are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Inspur Software i.e., Inspur Software and Shenwu Energy go up and down completely randomly.
Pair Corralation between Inspur Software and Shenwu Energy
Assuming the 90 days trading horizon Inspur Software is expected to generate 3.9 times less return on investment than Shenwu Energy. But when comparing it to its historical volatility, Inspur Software Co is 1.26 times less risky than Shenwu Energy. It trades about 0.0 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 482.00 in Shenwu Energy Saving on October 16, 2024 and sell it today you would lose (71.00) from holding Shenwu Energy Saving or give up 14.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Shenwu Energy Saving
Performance |
| Timeline |
| Inspur Software |
| Shenwu Energy Saving |
Inspur Software and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Shenwu Energy
The main advantage of trading using opposite Inspur Software and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Inspur Software vs. Ingenic Semiconductor | Inspur Software vs. Thinkon Semiconductor Jinzhou | Inspur Software vs. Jiugui Liquor Co | Inspur Software vs. Jinhui Liquor Co |
| Shenwu Energy vs. Guangdong Shenglu Telecommunication | Shenwu Energy vs. Guangzhou Haige Communications | Shenwu Energy vs. Xiangyang Automobile Bearing | Shenwu Energy vs. Queclink Wireless Solutions |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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