Correlation Between Jinhui Liquor and Inspur Software
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By analyzing existing cross correlation between Jinhui Liquor Co and Inspur Software Co, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Inspur Software.
Diversification Opportunities for Jinhui Liquor and Inspur Software
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Inspur is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Jinhui Liquor 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 Jinhui Liquor Co 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 Jinhui Liquor i.e., Jinhui Liquor and Inspur Software go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Inspur Software
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Inspur Software. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.64 times less risky than Inspur Software. The stock trades about -0.22 of its potential returns per unit of risk. The Inspur Software Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,549 in Inspur Software Co on October 30, 2024 and sell it today you would lose (70.00) from holding Inspur Software Co or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Inspur Software Co
Performance |
| Timeline |
| Jinhui Liquor |
| Inspur Software |
Jinhui Liquor and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Inspur Software
The main advantage of trading using opposite Jinhui Liquor and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. Xinjiang Beixin RoadBridge | Jinhui Liquor vs. Guangdong Transtek Medical | Jinhui Liquor vs. Road Environment Technology | Jinhui Liquor vs. Shaanxi Broadcast TV |
| Inspur Software vs. Bank of China | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. PetroChina Co Ltd | Inspur Software vs. Bank of Communications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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