Correlation Between Inspur Software and Southern PublishingMedia
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By analyzing existing cross correlation between Inspur Software Co and Southern PublishingMedia Co, you can compare the effects of market volatilities on Inspur Software and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Southern PublishingMedia.
Diversification Opportunities for Inspur Software and Southern PublishingMedia
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inspur and Southern is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Inspur Software i.e., Inspur Software and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Inspur Software and Southern PublishingMedia
Assuming the 90 days trading horizon Inspur Software is expected to generate 26.29 times less return on investment than Southern PublishingMedia. But when comparing it to its historical volatility, Inspur Software Co is 1.39 times less risky than Southern PublishingMedia. It trades about 0.0 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 811.00 in Southern PublishingMedia Co on October 16, 2024 and sell it today you would earn a total of 608.00 from holding Southern PublishingMedia Co or generate 74.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Inspur Software |
| Southern PublishingMedia |
Inspur Software and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Southern PublishingMedia
The main advantage of trading using opposite Inspur Software and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Inspur Software vs. Unisplendour Corp | Inspur Software vs. Kontour Medical Technology | Inspur Software vs. Allmed Medical Products | Inspur Software vs. Jiangsu Financial Leasing |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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