Correlation Between Inspur Software and Sinofibers Technology
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By analyzing existing cross correlation between Inspur Software Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Inspur Software and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Sinofibers Technology.
Diversification Opportunities for Inspur Software and Sinofibers Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inspur and Sinofibers is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Inspur Software i.e., Inspur Software and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Inspur Software and Sinofibers Technology
Assuming the 90 days trading horizon Inspur Software Co is expected to under-perform the Sinofibers Technology. In addition to that, Inspur Software is 1.11 times more volatile than Sinofibers Technology Co. It trades about 0.0 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.01 per unit of volatility. If you would invest 2,680 in Sinofibers Technology Co on October 14, 2024 and sell it today you would lose (42.00) from holding Sinofibers Technology Co or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Inspur Software |
| Sinofibers Technology |
Inspur Software and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Sinofibers Technology
The main advantage of trading using opposite Inspur Software and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Inspur Software vs. Jiangsu GDK Biotechnology | Inspur Software vs. Hubei Forbon Technology | Inspur Software vs. ROPEOK Technology Group | Inspur Software vs. Maxvision Technology Corp |
| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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