Correlation Between Glodon Software and Weichai Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Glodon Software Co and Weichai Heavy Machinery, you can compare the effects of market volatilities on Glodon Software and Weichai Heavy 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 Glodon Software with a short position of Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Weichai Heavy.
Diversification Opportunities for Glodon Software and Weichai Heavy
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Weichai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery and Glodon Software 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 Glodon Software Co are associated (or correlated) with Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Glodon Software i.e., Glodon Software and Weichai Heavy go up and down completely randomly.
Pair Corralation between Glodon Software and Weichai Heavy
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Weichai Heavy. In addition to that, Glodon Software is 1.12 times more volatile than Weichai Heavy Machinery. It trades about -0.06 of its total potential returns per unit of risk. Weichai Heavy Machinery is currently generating about 0.03 per unit of volatility. If you would invest 928.00 in Weichai Heavy Machinery on September 3, 2024 and sell it today you would earn a total of 280.00 from holding Weichai Heavy Machinery or generate 30.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Weichai Heavy Machinery
Performance |
| Timeline |
| Glodon Software |
| Weichai Heavy Machinery |
Glodon Software and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Weichai Heavy
The main advantage of trading using opposite Glodon Software and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.| Glodon Software vs. Agricultural Bank of | Glodon Software vs. China Construction Bank | Glodon Software vs. Postal Savings Bank | Glodon Software vs. Bank of Communications |
| Weichai Heavy vs. Guangdong Jingyi Metal | Weichai Heavy vs. Shandong Hongchuang Aluminum | Weichai Heavy vs. Jiaozuo Wanfang Aluminum | Weichai Heavy vs. Rising Nonferrous Metals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |