Correlation Between Inspur Software and Glodon Software
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By analyzing existing cross correlation between Inspur Software Co and Glodon Software Co, you can compare the effects of market volatilities on Inspur Software and Glodon 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 Inspur Software with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Glodon Software.
Diversification Opportunities for Inspur Software and Glodon Software
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Glodon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Inspur Software i.e., Inspur Software and Glodon Software go up and down completely randomly.
Pair Corralation between Inspur Software and Glodon Software
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.91 times more return on investment than Glodon Software. However, Inspur Software Co is 1.1 times less risky than Glodon Software. It trades about 0.02 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.06 per unit of risk. If you would invest 1,440 in Inspur Software Co on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Inspur Software Co or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Glodon Software Co
Performance |
| Timeline |
| Inspur Software |
| Glodon Software |
Inspur Software and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Glodon Software
The main advantage of trading using opposite Inspur Software and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Glodon 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Inspur Software vs. Agricultural Bank of | Inspur Software vs. China Construction Bank | Inspur Software vs. Postal Savings Bank | Inspur Software vs. Bank of Communications |
| Glodon Software vs. Agricultural Bank of | Glodon Software vs. China Construction Bank | Glodon Software vs. Postal Savings Bank | Glodon Software 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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