Correlation Between Inspur Software and Jiangsu Broadcasting
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By analyzing existing cross correlation between Inspur Software Co and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Inspur Software and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Jiangsu Broadcasting.
Diversification Opportunities for Inspur Software and Jiangsu Broadcasting
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inspur and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Inspur Software i.e., Inspur Software and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Inspur Software and Jiangsu Broadcasting
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 1.48 times more return on investment than Jiangsu Broadcasting. However, Inspur Software is 1.48 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.21 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.25 per unit of risk. If you would invest 1,045 in Inspur Software Co on September 12, 2024 and sell it today you would earn a total of 615.00 from holding Inspur Software Co or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Inspur Software |
| Jiangsu Broadcasting |
Inspur Software and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Jiangsu Broadcasting
The main advantage of trading using opposite Inspur Software and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Inspur Software vs. Zhejiang Yayi Metal | Inspur Software vs. Lonkey Industrial Co | Inspur Software vs. JCHX Mining Management | Inspur Software vs. Cicc Fund Management |
| Jiangsu Broadcasting vs. JiShi Media Co | Jiangsu Broadcasting vs. Mango Excellent Media | Jiangsu Broadcasting vs. Thinkingdom Media Group | Jiangsu Broadcasting vs. Inspur Software Co |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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