Correlation Between Jinhe Biotechnology and Inspur Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Inspur Software Co, you can compare the effects of market volatilities on Jinhe Biotechnology 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 Jinhe Biotechnology with a short position of Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Inspur Software.
Diversification Opportunities for Jinhe Biotechnology and Inspur Software
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhe and Inspur is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology i.e., Jinhe Biotechnology and Inspur Software go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Inspur Software
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Inspur Software. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.3 times less risky than Inspur Software. The stock trades about 0.0 of its potential returns per unit of risk. The Inspur Software Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,545 in Inspur Software Co on October 22, 2024 and sell it today you would lose (112.00) from holding Inspur Software Co or give up 7.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhe Biotechnology Co vs. Inspur Software Co
Performance |
Timeline |
Jinhe Biotechnology |
Inspur Software |
Jinhe Biotechnology and Inspur Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhe Biotechnology and Inspur Software
The main advantage of trading using opposite Jinhe Biotechnology and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology 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.The idea behind Jinhe Biotechnology Co and Inspur Software Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Inspur Software vs. HanS Laser Tech | Inspur Software vs. Bloomage Biotechnology Corp | Inspur Software vs. Jiujiang Shanshui Technology | Inspur Software vs. Yili Chuanning 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |