Correlation Between Inspur Software and Qiming Information
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By analyzing existing cross correlation between Inspur Software Co and Qiming Information Technology, you can compare the effects of market volatilities on Inspur Software and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Qiming Information.
Diversification Opportunities for Inspur Software and Qiming Information
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inspur and Qiming is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Inspur Software i.e., Inspur Software and Qiming Information go up and down completely randomly.
Pair Corralation between Inspur Software and Qiming Information
Assuming the 90 days trading horizon Inspur Software is expected to generate 5.41 times less return on investment than Qiming Information. But when comparing it to its historical volatility, Inspur Software Co is 1.44 times less risky than Qiming Information. It trades about 0.01 of its potential returns per unit of risk. Qiming Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,483 in Qiming Information Technology on October 30, 2024 and sell it today you would earn a total of 309.00 from holding Qiming Information Technology or generate 20.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Qiming Information Technology
Performance |
| Timeline |
| Inspur Software |
| Qiming Information |
Inspur Software and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Qiming Information
The main advantage of trading using opposite Inspur Software and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Inspur Software vs. Bank of China | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. PetroChina Co Ltd | Inspur Software vs. Bank of Communications |
| Qiming Information vs. Bank of China | Qiming Information vs. Kweichow Moutai Co | Qiming Information vs. PetroChina Co Ltd | Qiming Information 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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