Correlation Between Senci Electric and Inspur Software
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By analyzing existing cross correlation between Senci Electric Machinery and Inspur Software Co, you can compare the effects of market volatilities on Senci Electric 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 Senci Electric with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Inspur Software.
Diversification Opportunities for Senci Electric and Inspur Software
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Senci and Inspur is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Senci Electric 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 Senci Electric Machinery 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 Senci Electric i.e., Senci Electric and Inspur Software go up and down completely randomly.
Pair Corralation between Senci Electric and Inspur Software
Assuming the 90 days trading horizon Senci Electric Machinery is expected to generate 1.38 times more return on investment than Inspur Software. However, Senci Electric is 1.38 times more volatile than Inspur Software Co. It trades about 0.14 of its potential returns per unit of risk. Inspur Software Co is currently generating about -0.15 per unit of risk. If you would invest 1,612 in Senci Electric Machinery on October 18, 2024 and sell it today you would earn a total of 161.00 from holding Senci Electric Machinery or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Inspur Software Co
Performance |
| Timeline |
| Senci Electric Machinery |
| Inspur Software |
Senci Electric and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Inspur Software
The main advantage of trading using opposite Senci Electric and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric 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.| Senci Electric vs. Cloud Live Technology | Senci Electric vs. Nanjing Putian Telecommunications | Senci Electric vs. Tianjin Realty Development | Senci Electric vs. Shenzhen Coship Electronics |
| Inspur Software vs. Zhengzhou Coal Mining | Inspur Software vs. Shenzhen Topway Video | Inspur Software vs. Ningbo Fangzheng Automobile | Inspur Software vs. Chenzhou Jingui Silver |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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