Correlation Between Inspur Software and Shanghai Newtouch
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By analyzing existing cross correlation between Inspur Software Co and Shanghai Newtouch Software, you can compare the effects of market volatilities on Inspur Software and Shanghai Newtouch 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 Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Shanghai Newtouch.
Diversification Opportunities for Inspur Software and Shanghai Newtouch
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inspur and Shanghai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Inspur Software i.e., Inspur Software and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Inspur Software and Shanghai Newtouch
Assuming the 90 days trading horizon Inspur Software Co is expected to under-perform the Shanghai Newtouch. But the stock apears to be less risky and, when comparing its historical volatility, Inspur Software Co is 1.86 times less risky than Shanghai Newtouch. The stock trades about -0.27 of its potential returns per unit of risk. The Shanghai Newtouch Software is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,682 in Shanghai Newtouch Software on October 11, 2024 and sell it today you would lose (280.00) from holding Shanghai Newtouch Software or give up 16.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Inspur Software |
| Shanghai Newtouch |
Inspur Software and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Shanghai Newtouch
The main advantage of trading using opposite Inspur Software and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch'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 |
| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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