Correlation Between Inspur Software and Epoxy Base
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inspur Software Co and Epoxy Base Electronic, you can compare the effects of market volatilities on Inspur Software and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Epoxy Base.
Diversification Opportunities for Inspur Software and Epoxy Base
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inspur and Epoxy is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Inspur Software i.e., Inspur Software and Epoxy Base go up and down completely randomly.
Pair Corralation between Inspur Software and Epoxy Base
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.53 times more return on investment than Epoxy Base. However, Inspur Software Co is 1.89 times less risky than Epoxy Base. It trades about -0.03 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about -0.02 per unit of risk. If you would invest 1,549 in Inspur Software Co on October 30, 2024 and sell it today you would lose (70.00) from holding Inspur Software Co or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Epoxy Base Electronic
Performance |
| Timeline |
| Inspur Software |
| Epoxy Base Electronic |
Inspur Software and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Epoxy Base
The main advantage of trading using opposite Inspur Software and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Inspur Software vs. Bank of China | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. PetroChina Co Ltd | Inspur Software vs. Bank of Communications |
| Epoxy Base vs. Shengda Mining Co | Epoxy Base vs. Chengtun Mining Group | Epoxy Base vs. Rising Nonferrous Metals | Epoxy Base vs. Hefei Metalforming Mach |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |