Correlation Between Inspur Software and Guangzhou KingTeller
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By analyzing existing cross correlation between Inspur Software Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Inspur Software and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Guangzhou KingTeller.
Diversification Opportunities for Inspur Software and Guangzhou KingTeller
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inspur and Guangzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Inspur Software i.e., Inspur Software and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Inspur Software and Guangzhou KingTeller
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.52 times more return on investment than Guangzhou KingTeller. However, Inspur Software Co is 1.92 times less risky than Guangzhou KingTeller. It trades about -0.34 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.29 per unit of risk. If you would invest 1,617 in Inspur Software Co on October 11, 2024 and sell it today you would lose (277.00) from holding Inspur Software Co or give up 17.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Inspur Software |
| Guangzhou KingTeller |
Inspur Software and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Guangzhou KingTeller
The main advantage of trading using opposite Inspur Software and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Inspur Software vs. Industrial and Commercial | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. Agricultural Bank of | Inspur Software vs. China Mobile Limited |
| Guangzhou KingTeller vs. China Aluminum International | Guangzhou KingTeller vs. Tianshan Aluminum Group | Guangzhou KingTeller vs. Inspur Software Co | Guangzhou KingTeller vs. Sino Platinum Metals Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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