Correlation Between Inspur Software and Hangzhou Minsheng
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By analyzing existing cross correlation between Inspur Software Co and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Inspur Software and Hangzhou Minsheng 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 Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Hangzhou Minsheng.
Diversification Opportunities for Inspur Software and Hangzhou Minsheng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inspur and Hangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Inspur Software i.e., Inspur Software and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Inspur Software and Hangzhou Minsheng
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 1.29 times more return on investment than Hangzhou Minsheng. However, Inspur Software is 1.29 times more volatile than Hangzhou Minsheng Healthcare. It trades about -0.04 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.16 per unit of risk. If you would invest 1,557 in Inspur Software Co on November 1, 2024 and sell it today you would lose (78.00) from holding Inspur Software Co or give up 5.01% 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. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Inspur Software |
| Hangzhou Minsheng |
Inspur Software and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Hangzhou Minsheng
The main advantage of trading using opposite Inspur Software and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Hangzhou Minsheng 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 Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Inspur Software vs. Jiujiang Shanshui Technology | Inspur Software vs. Xiamen Bank Co | Inspur Software vs. Unisplendour Corp | Inspur Software vs. Financial Street Holdings |
| Hangzhou Minsheng vs. Maxvision Technology Corp | Hangzhou Minsheng vs. Jiujiang Shanshui Technology | Hangzhou Minsheng vs. Inspur Software Co | Hangzhou Minsheng vs. Fujian Boss Software |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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