Correlation Between Inspur Software and Liaoning Chengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inspur Software Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Inspur Software and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspur Software and Liaoning Chengda.
Diversification Opportunities for Inspur Software and Liaoning Chengda
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inspur and Liaoning is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Inspur Software Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Inspur Software i.e., Inspur Software and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Inspur Software and Liaoning Chengda
Assuming the 90 days trading horizon Inspur Software Co is expected to under-perform the Liaoning Chengda. In addition to that, Inspur Software is 1.89 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.15 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.08 per unit of volatility. If you would invest 2,862 in Liaoning Chengda Biotechnology on September 12, 2024 and sell it today you would lose (82.00) from holding Liaoning Chengda Biotechnology or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspur Software Co vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Inspur Software |
| Liaoning Chengda Bio |
Inspur Software and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspur Software and Liaoning Chengda
The main advantage of trading using opposite Inspur Software and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspur Software position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Inspur Software vs. Liaoning Chengda Biotechnology | Inspur Software vs. Yingde Greatchem Chemicals | Inspur Software vs. Jiahe Foods Industry | Inspur Software vs. Guangdong Wens Foodstuff |
| Liaoning Chengda vs. Cultural Investment Holdings | Liaoning Chengda vs. Gome Telecom Equipment | Liaoning Chengda vs. Holitech Technology Co | Liaoning Chengda vs. Zotye Automobile 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |