Correlation Between Inspur Software and Shanghai Xinhua
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By analyzing existing cross correlation between Inspur Software Co and Shanghai Xinhua Media, you can compare the effects of market volatilities on Inspur Software and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Shanghai Xinhua.
Diversification Opportunities for Inspur Software and Shanghai Xinhua
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Inspur Software i.e., Inspur Software and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Inspur Software and Shanghai Xinhua
Assuming the 90 days trading horizon Inspur Software is expected to generate 6.09 times less return on investment than Shanghai Xinhua. But when comparing it to its historical volatility, Inspur Software Co is 1.49 times less risky than Shanghai Xinhua. It trades about 0.05 of its potential returns per unit of risk. Shanghai Xinhua Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 626.00 in Shanghai Xinhua Media on September 5, 2024 and sell it today you would earn a total of 131.00 from holding Shanghai Xinhua Media or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Inspur Software |
| Shanghai Xinhua Media |
Inspur Software and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Shanghai Xinhua
The main advantage of trading using opposite Inspur Software and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Inspur Software vs. Runjian Communication Co | Inspur Software vs. Shandong Mining Machinery | Inspur Software vs. Eastern Communications Co | Inspur Software vs. Xinjiang Communications Construction |
| Shanghai Xinhua vs. Jiangsu Phoenix Publishing | Shanghai Xinhua vs. Zhejiang Publishing Media | Shanghai Xinhua vs. Inspur Software Co | Shanghai Xinhua vs. Beijing Kaiwen Education |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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