Correlation Between Inspur Software and Gan Yuan
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By analyzing existing cross correlation between Inspur Software Co and Gan Yuan Foods, you can compare the effects of market volatilities on Inspur Software and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Gan Yuan.
Diversification Opportunities for Inspur Software and Gan Yuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Gan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Inspur Software i.e., Inspur Software and Gan Yuan go up and down completely randomly.
Pair Corralation between Inspur Software and Gan Yuan
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 1.22 times more return on investment than Gan Yuan. However, Inspur Software is 1.22 times more volatile than Gan Yuan Foods. It trades about 0.13 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.07 per unit of risk. If you would invest 1,007 in Inspur Software Co on September 5, 2024 and sell it today you would earn a total of 607.00 from holding Inspur Software Co or generate 60.28% 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. Gan Yuan Foods
Performance |
| Timeline |
| Inspur Software |
| Gan Yuan Foods |
Inspur Software and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Gan Yuan
The main advantage of trading using opposite Inspur Software and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Inspur Software vs. Runjian Communication Co | Inspur Software vs. Shandong Mining Machinery | Inspur Software vs. Eastern Communications Co | Inspur Software vs. Xinjiang Communications Construction |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Suzhou Mingzhi Technology | Gan Yuan vs. Guangzhou Haige 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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