Correlation Between Guocheng Mining and Glodon Software
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By analyzing existing cross correlation between Guocheng Mining Co and Glodon Software Co, you can compare the effects of market volatilities on Guocheng Mining and Glodon 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 Guocheng Mining with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Glodon Software.
Diversification Opportunities for Guocheng Mining and Glodon Software
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guocheng and Glodon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Glodon Software go up and down completely randomly.
Pair Corralation between Guocheng Mining and Glodon Software
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Glodon Software. In addition to that, Guocheng Mining is 1.41 times more volatile than Glodon Software Co. It trades about -0.42 of its total potential returns per unit of risk. Glodon Software Co is currently generating about -0.26 per unit of volatility. If you would invest 1,267 in Glodon Software Co on October 17, 2024 and sell it today you would lose (167.00) from holding Glodon Software Co or give up 13.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Glodon Software Co
Performance |
| Timeline |
| Guocheng Mining |
| Glodon Software |
Guocheng Mining and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Glodon Software
The main advantage of trading using opposite Guocheng Mining and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Glodon 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Guocheng Mining vs. Luyin Investment Group | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Beijing Bewinner Communications | Guocheng Mining vs. Jiangsu Yanghe Brewery |
| Glodon Software vs. Fangda Special Steel | Glodon Software vs. Olympic Circuit Technology | Glodon Software vs. Soyea Technology Co | Glodon Software vs. Eyebright Medical Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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