Correlation Between Glodon Software and Shaanxi Energy
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By analyzing existing cross correlation between Glodon Software Co and Shaanxi Energy Investment, you can compare the effects of market volatilities on Glodon Software and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shaanxi Energy.
Diversification Opportunities for Glodon Software and Shaanxi Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Shaanxi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Glodon Software i.e., Glodon Software and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Glodon Software and Shaanxi Energy
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shaanxi Energy. In addition to that, Glodon Software is 1.53 times more volatile than Shaanxi Energy Investment. It trades about -0.06 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.03 per unit of volatility. If you would invest 1,331 in Shaanxi Energy Investment on September 4, 2024 and sell it today you would lose (369.00) from holding Shaanxi Energy Investment or give up 27.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.07% |
| Values | Daily Returns |
Glodon Software Co vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Glodon Software |
| Shaanxi Energy Investment |
Glodon Software and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shaanxi Energy
The main advantage of trading using opposite Glodon Software and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Glodon Software vs. Guangzhou Shangpin Home | Glodon Software vs. Nanjing OLO Home | Glodon Software vs. Shandong Homey Aquatic | Glodon Software vs. Southchip Semiconductor Technology |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xinjiang Communications Construction | Shaanxi Energy vs. Sino Platinum Metals Co | Shaanxi Energy vs. China Citic Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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