Correlation Between Western Metal and Glodon Software
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By analyzing existing cross correlation between Western Metal Materials and Glodon Software Co, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Glodon Software.
Diversification Opportunities for Western Metal and Glodon Software
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Glodon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Glodon Software go up and down completely randomly.
Pair Corralation between Western Metal and Glodon Software
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.46 times more return on investment than Glodon Software. However, Western Metal is 1.46 times more volatile than Glodon Software Co. It trades about 0.19 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.43 per unit of risk. If you would invest 1,604 in Western Metal Materials on October 13, 2024 and sell it today you would earn a total of 243.00 from holding Western Metal Materials or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Glodon Software Co
Performance |
| Timeline |
| Western Metal Materials |
| Glodon Software |
Western Metal and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Glodon Software
The main advantage of trading using opposite Western Metal and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Xiandai Investment Co | Western Metal vs. Jiangsu Yueda Investment | Western Metal vs. Hunan Investment Group | Western Metal vs. Nanjing Vishee Medical |
| Glodon Software vs. Guangdong Jingyi Metal | Glodon Software vs. Guocheng Mining Co | Glodon Software vs. Bus Online Co | Glodon Software vs. Western Metal Materials |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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