Correlation Between Inspur Software and Shanghai OPM
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By analyzing existing cross correlation between Inspur Software Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Inspur Software and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Shanghai OPM.
Diversification Opportunities for Inspur Software and Shanghai OPM
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inspur and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Inspur Software i.e., Inspur Software and Shanghai OPM go up and down completely randomly.
Pair Corralation between Inspur Software and Shanghai OPM
Assuming the 90 days trading horizon Inspur Software is expected to generate 1.59 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Inspur Software Co is 1.33 times less risky than Shanghai OPM. It trades about 0.13 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,340 in Shanghai OPM Biosciences on September 13, 2024 and sell it today you would earn a total of 1,048 from holding Shanghai OPM Biosciences or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Inspur Software Co vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Inspur Software |
| Shanghai OPM Biosciences |
Inspur Software and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Shanghai OPM
The main advantage of trading using opposite Inspur Software and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM'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 |
| Shanghai OPM vs. Western Superconducting Tech | Shanghai OPM vs. Shenzhen Centralcon Investment | Shanghai OPM vs. Kuangda Technology Group | Shanghai OPM vs. Changchun UP Optotech |
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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