Correlation Between Inspur Software and Sichuan Fulin
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By analyzing existing cross correlation between Inspur Software Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Inspur Software and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Sichuan Fulin.
Diversification Opportunities for Inspur Software and Sichuan Fulin
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inspur and Sichuan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Inspur Software i.e., Inspur Software and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Inspur Software and Sichuan Fulin
Assuming the 90 days trading horizon Inspur Software is expected to generate 1.02 times less return on investment than Sichuan Fulin. But when comparing it to its historical volatility, Inspur Software Co is 1.1 times less risky than Sichuan Fulin. It trades about 0.18 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 681.00 in Sichuan Fulin Transportation on November 2, 2024 and sell it today you would earn a total of 51.00 from holding Sichuan Fulin Transportation or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Inspur Software |
| Sichuan Fulin Transp |
Inspur Software and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Sichuan Fulin
The main advantage of trading using opposite Inspur Software and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin'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 |
| Sichuan Fulin vs. Hunan Investment Group | Sichuan Fulin vs. Xiamen Insight Investment | Sichuan Fulin vs. Zoje Resources Investment | Sichuan Fulin vs. Nantong Haixing Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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