Correlation Between Inspur Software and Hainan Haiqi
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By analyzing existing cross correlation between Inspur Software Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Inspur Software and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Hainan Haiqi.
Diversification Opportunities for Inspur Software and Hainan Haiqi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inspur and Hainan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Inspur Software i.e., Inspur Software and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Inspur Software and Hainan Haiqi
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 0.98 times more return on investment than Hainan Haiqi. However, Inspur Software Co is 1.02 times less risky than Hainan Haiqi. It trades about 0.01 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.02 per unit of risk. If you would invest 1,518 in Inspur Software Co on October 11, 2024 and sell it today you would lose (155.00) from holding Inspur Software Co or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Inspur Software |
| Hainan Haiqi Transpo |
Inspur Software and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Hainan Haiqi
The main advantage of trading using opposite Inspur Software and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Inspur Software vs. AVCON Information Tech | Inspur Software vs. Union Semiconductor Co | Inspur Software vs. Jinxiandai Information Industry | Inspur Software vs. Dawning Information Industry |
| Hainan Haiqi vs. Beijing Kingsoft Office | Hainan Haiqi vs. Guangzhou Restaurants Group | Hainan Haiqi vs. Anhui Transport Consulting | Hainan Haiqi vs. Easyhome New Retail |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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