Correlation Between Hainan Haiqi and Inspur Software
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Inspur Software Co, you can compare the effects of market volatilities on Hainan Haiqi 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 Hainan Haiqi with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Inspur Software.
Diversification Opportunities for Hainan Haiqi and Inspur Software
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Inspur is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Hainan Haiqi 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 Hainan Haiqi Transportation 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 Hainan Haiqi i.e., Hainan Haiqi and Inspur Software go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Inspur Software
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Inspur Software. In addition to that, Hainan Haiqi is 1.02 times more volatile than Inspur Software Co. It trades about -0.02 of its total potential returns per unit of risk. Inspur Software Co is currently generating about 0.01 per unit of volatility. If you would invest 1,518 in Inspur Software Co on October 11, 2024 and sell it today you would lose (155.00) from holding Inspur Software Co or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Inspur Software Co
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Inspur Software |
Hainan Haiqi and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Inspur Software
The main advantage of trading using opposite Hainan Haiqi and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi 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.| Hainan Haiqi vs. Beijing Kingsoft Office | Hainan Haiqi vs. Guangzhou Restaurants Group | Hainan Haiqi vs. Anhui Transport Consulting | Hainan Haiqi vs. Easyhome New Retail |
| Inspur Software vs. AVCON Information Tech | Inspur Software vs. Union Semiconductor Co | Inspur Software vs. Jinxiandai Information Industry | Inspur Software vs. Dawning Information Industry |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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