Correlation Between Zhejiang Xiantong and Inspur Software
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By analyzing existing cross correlation between Zhejiang Xiantong RubberPlastic and Inspur Software Co, you can compare the effects of market volatilities on Zhejiang Xiantong 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 Zhejiang Xiantong with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Xiantong and Inspur Software.
Diversification Opportunities for Zhejiang Xiantong and Inspur Software
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Inspur is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Xiantong RubberPlasti and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Zhejiang Xiantong 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 Zhejiang Xiantong RubberPlastic 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 Zhejiang Xiantong i.e., Zhejiang Xiantong and Inspur Software go up and down completely randomly.
Pair Corralation between Zhejiang Xiantong and Inspur Software
Assuming the 90 days trading horizon Zhejiang Xiantong is expected to generate 3.56 times less return on investment than Inspur Software. But when comparing it to its historical volatility, Zhejiang Xiantong RubberPlastic is 1.45 times less risky than Inspur Software. It trades about 0.04 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Inspur Software Co on November 3, 2024 and sell it today you would earn a total of 448.00 from holding Inspur Software Co or generate 43.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Xiantong RubberPlasti vs. Inspur Software Co
Performance |
| Timeline |
| Zhejiang Xiantong |
| Inspur Software |
Zhejiang Xiantong and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Xiantong and Inspur Software
The main advantage of trading using opposite Zhejiang Xiantong and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Xiantong 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.| Zhejiang Xiantong vs. Jiangsu Broadcasting Cable | Zhejiang Xiantong vs. Shuhua Sports Co | Zhejiang Xiantong vs. Silkroad Visual Technology | Zhejiang Xiantong vs. Guangzhou Jinyi Media |
| Inspur Software vs. Xinjiang Baodi Mining | Inspur Software vs. Hainan Mining Co | Inspur Software vs. Guangdong Silvere Sci | Inspur Software vs. Hunan Investment Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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