Correlation Between Shanghai Newtouch and Inspur Software
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By analyzing existing cross correlation between Shanghai Newtouch Software and Inspur Software Co, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Inspur Software.
Diversification Opportunities for Shanghai Newtouch and Inspur Software
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Inspur is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Shanghai Newtouch 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 Shanghai Newtouch Software 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 Shanghai Newtouch i.e., Shanghai Newtouch and Inspur Software go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Inspur Software
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 1.58 times more return on investment than Inspur Software. However, Shanghai Newtouch is 1.58 times more volatile than Inspur Software Co. It trades about 0.03 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.01 per unit of risk. If you would invest 1,089 in Shanghai Newtouch Software on October 11, 2024 and sell it today you would earn a total of 353.00 from holding Shanghai Newtouch Software or generate 32.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Inspur Software Co
Performance |
| Timeline |
| Shanghai Newtouch |
| Inspur Software |
Shanghai Newtouch and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Inspur Software
The main advantage of trading using opposite Shanghai Newtouch and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology Co |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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