Correlation Between Inspur Software and Wuxi Xinhongye
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inspur Software Co and Wuxi Xinhongye Wire, you can compare the effects of market volatilities on Inspur Software and Wuxi Xinhongye 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 Wuxi Xinhongye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Wuxi Xinhongye.
Diversification Opportunities for Inspur Software and Wuxi Xinhongye
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Wuxi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Wuxi Xinhongye Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xinhongye Wire 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 Wuxi Xinhongye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xinhongye Wire has no effect on the direction of Inspur Software i.e., Inspur Software and Wuxi Xinhongye go up and down completely randomly.
Pair Corralation between Inspur Software and Wuxi Xinhongye
Assuming the 90 days trading horizon Inspur Software Co is expected to under-perform the Wuxi Xinhongye. But the stock apears to be less risky and, when comparing its historical volatility, Inspur Software Co is 1.11 times less risky than Wuxi Xinhongye. The stock trades about -0.19 of its potential returns per unit of risk. The Wuxi Xinhongye Wire is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,766 in Wuxi Xinhongye Wire on August 30, 2024 and sell it today you would lose (307.00) from holding Wuxi Xinhongye Wire or give up 11.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Wuxi Xinhongye Wire
Performance |
| Timeline |
| Inspur Software |
| Wuxi Xinhongye Wire |
Inspur Software and Wuxi Xinhongye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Wuxi Xinhongye
The main advantage of trading using opposite Inspur Software and Wuxi Xinhongye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Wuxi Xinhongye 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 Wuxi Xinhongye will offset losses from the drop in Wuxi Xinhongye's long position.| Inspur Software vs. Chengdu Kanghua Biological | Inspur Software vs. Beijing Wantai Biological | Inspur Software vs. Suzhou Novoprotein Scientific | Inspur Software vs. Aluminum Corp of |
| Wuxi Xinhongye vs. Inspur Software Co | Wuxi Xinhongye vs. Dr Peng Telecom | Wuxi Xinhongye vs. Yingde Greatchem Chemicals | Wuxi Xinhongye vs. CICT Mobile Communication |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |