Correlation Between Inspur Software and Runjian Communication
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By analyzing existing cross correlation between Inspur Software Co and Runjian Communication Co, you can compare the effects of market volatilities on Inspur Software and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Runjian Communication.
Diversification Opportunities for Inspur Software and Runjian Communication
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inspur and Runjian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Inspur Software i.e., Inspur Software and Runjian Communication go up and down completely randomly.
Pair Corralation between Inspur Software and Runjian Communication
Assuming the 90 days trading horizon Inspur Software Co is expected to under-perform the Runjian Communication. In addition to that, Inspur Software is 1.24 times more volatile than Runjian Communication Co. It trades about -0.07 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about 0.02 per unit of volatility. If you would invest 3,107 in Runjian Communication Co on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Runjian Communication Co or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Runjian Communication Co
Performance |
| Timeline |
| Inspur Software |
| Runjian Communication |
Inspur Software and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Runjian Communication
The main advantage of trading using opposite Inspur Software and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Inspur Software vs. Zhejiang Yayi Metal | Inspur Software vs. Lonkey Industrial Co | Inspur Software vs. JCHX Mining Management | Inspur Software vs. Cicc Fund Management |
| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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