Correlation Between Inspur Software and Shandong Ruifeng
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By analyzing existing cross correlation between Inspur Software Co and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Inspur Software and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Shandong Ruifeng.
Diversification Opportunities for Inspur Software and Shandong Ruifeng
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inspur and Shandong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Inspur Software i.e., Inspur Software and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Inspur Software and Shandong Ruifeng
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.78 times more return on investment than Shandong Ruifeng. However, Inspur Software Co is 1.28 times less risky than Shandong Ruifeng. It trades about -0.2 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about -0.18 per unit of risk. If you would invest 1,839 in Inspur Software Co on September 12, 2024 and sell it today you would lose (222.00) from holding Inspur Software Co or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Inspur Software |
| Shandong Ruifeng Chemical |
Inspur Software and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Shandong Ruifeng
The main advantage of trading using opposite Inspur Software and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| Inspur Software vs. Liaoning Chengda Biotechnology | Inspur Software vs. Yingde Greatchem Chemicals | Inspur Software vs. Jiahe Foods Industry | Inspur Software vs. Guangdong Wens Foodstuff |
| Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Wanhua Chemical Group | Shandong Ruifeng vs. Baoshan Iron Steel | Shandong Ruifeng vs. Rongsheng Petrochemical Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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