Correlation Between Inspur Software and Hangzhou Gisway
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By analyzing existing cross correlation between Inspur Software Co and Hangzhou Gisway Information, you can compare the effects of market volatilities on Inspur Software and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Hangzhou Gisway.
Diversification Opportunities for Inspur Software and Hangzhou Gisway
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inspur and Hangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Inspur Software i.e., Inspur Software and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Inspur Software and Hangzhou Gisway
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.74 times more return on investment than Hangzhou Gisway. However, Inspur Software Co is 1.35 times less risky than Hangzhou Gisway. It trades about 0.35 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.07 per unit of risk. If you would invest 1,317 in Inspur Software Co on November 7, 2024 and sell it today you would earn a total of 162.00 from holding Inspur Software Co or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Inspur Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hangzhou Gisway Info |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Inspur Software and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Hangzhou Gisway
The main advantage of trading using opposite Inspur Software and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.The idea behind Inspur Software Co and Hangzhou Gisway Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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