Correlation Between Inspur Software and Huitong Construction
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By analyzing existing cross correlation between Inspur Software Co and Huitong Construction Group, you can compare the effects of market volatilities on Inspur Software and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Huitong Construction.
Diversification Opportunities for Inspur Software and Huitong Construction
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Huitong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Inspur Software i.e., Inspur Software and Huitong Construction go up and down completely randomly.
Pair Corralation between Inspur Software and Huitong Construction
Assuming the 90 days trading horizon Inspur Software Co is expected to generate 1.1 times more return on investment than Huitong Construction. However, Inspur Software is 1.1 times more volatile than Huitong Construction Group. It trades about 0.02 of its potential returns per unit of risk. Huitong Construction Group is currently generating about -0.02 per unit of risk. If you would invest 1,440 in Inspur Software Co on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Inspur Software Co or generate 7.57% 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. Huitong Construction Group
Performance |
| Timeline |
| Inspur Software |
| Huitong Construction |
Inspur Software and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Huitong Construction
The main advantage of trading using opposite Inspur Software and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| Inspur Software vs. Agricultural Bank of | Inspur Software vs. China Construction Bank | Inspur Software vs. Postal Savings Bank | Inspur Software vs. Bank of Communications |
| Huitong Construction vs. Cultural Investment Holdings | Huitong Construction vs. Gome Telecom Equipment | Huitong Construction vs. Bus Online Co | Huitong Construction vs. Holitech Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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