Correlation Between Jiangsu GDK and Inspur Software
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Inspur Software Co, you can compare the effects of market volatilities on Jiangsu GDK 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 Jiangsu GDK with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Inspur Software.
Diversification Opportunities for Jiangsu GDK and Inspur Software
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Inspur is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software and Jiangsu GDK 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 Jiangsu GDK Biotechnology 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 Jiangsu GDK i.e., Jiangsu GDK and Inspur Software go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Inspur Software
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Inspur Software. In addition to that, Jiangsu GDK is 1.01 times more volatile than Inspur Software Co. It trades about -0.16 of its total potential returns per unit of risk. Inspur Software Co is currently generating about -0.07 per unit of volatility. If you would invest 1,526 in Inspur Software Co on October 28, 2024 and sell it today you would lose (68.00) from holding Inspur Software Co or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Inspur Software Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Inspur Software |
Jiangsu GDK and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Inspur Software
The main advantage of trading using opposite Jiangsu GDK and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK 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.| Jiangsu GDK vs. Changjiang Jinggong Steel | Jiangsu GDK vs. Sinocat Environmental Technology | Jiangsu GDK vs. Offshore Oil Engineering | Jiangsu GDK vs. Guangzhou Zhujiang Brewery |
| Inspur Software vs. Shandong Sanyuan Biotechnology | Inspur Software vs. iSoftStone Information Technology | Inspur Software vs. Montage Technology Co | Inspur Software vs. Fujian Wanchen Biotechnology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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