Correlation Between Luyin Investment and Inspur Software
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By analyzing existing cross correlation between Luyin Investment Group and Inspur Software Co, you can compare the effects of market volatilities on Luyin Investment and Inspur Software 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 Luyin Investment with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Inspur Software.
Diversification Opportunities for Luyin Investment and Inspur Software
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Inspur is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Luyin Investment 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 Luyin Investment Group are associated (or correlated) with Inspur Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspur Software has no effect on the direction of Luyin Investment i.e., Luyin Investment and Inspur Software go up and down completely randomly.
Pair Corralation between Luyin Investment and Inspur Software
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Inspur Software. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.38 times less risky than Inspur Software. The stock trades about 0.0 of its potential returns per unit of risk. The Inspur Software Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,612 in Inspur Software Co on October 28, 2024 and sell it today you would lose (154.00) from holding Inspur Software Co or give up 9.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Inspur Software Co
Performance |
| Timeline |
| Luyin Investment |
| Inspur Software |
Luyin Investment and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Inspur Software
The main advantage of trading using opposite Luyin Investment and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Inspur Software 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 Inspur Software will offset losses from the drop in Inspur Software's long position.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
| Inspur Software vs. Malion New Materials | Inspur Software vs. Jinhe Biotechnology Co | Inspur Software vs. Western Metal Materials | Inspur Software vs. Bohai Leasing 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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