Correlation Between Chahua Modern and Inspur Software
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By analyzing existing cross correlation between Chahua Modern Housewares and Inspur Software Co, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Inspur Software.
Diversification Opportunities for Chahua Modern and Inspur Software
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chahua and Inspur is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Inspur Software go up and down completely randomly.
Pair Corralation between Chahua Modern and Inspur Software
Assuming the 90 days trading horizon Chahua Modern is expected to generate 11.25 times less return on investment than Inspur Software. But when comparing it to its historical volatility, Chahua Modern Housewares is 1.31 times less risky than Inspur Software. It trades about 0.01 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,504 in Inspur Software Co on November 30, 2024 and sell it today you would earn a total of 170.00 from holding Inspur Software Co or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Inspur Software Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Inspur Software |
Chahua Modern and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Inspur Software
The main advantage of trading using opposite Chahua Modern and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Baoding Dongli Machinery | Chahua Modern vs. Huasi Agricultural Development | Chahua Modern vs. Namchow Food Group | Chahua Modern vs. Xiangpiaopiao Food Co |
| Inspur Software vs. Citic Guoan Wine | Inspur Software vs. Elec Tech International Co | Inspur Software vs. Guangdong Qunxing Toys | Inspur Software vs. HUAQIN TECHNOLOGY LTD |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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