Correlation Between Glodon Software and Zoje Resources
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By analyzing existing cross correlation between Glodon Software Co and Zoje Resources Investment, you can compare the effects of market volatilities on Glodon Software and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Zoje Resources.
Diversification Opportunities for Glodon Software and Zoje Resources
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Zoje is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Glodon Software i.e., Glodon Software and Zoje Resources go up and down completely randomly.
Pair Corralation between Glodon Software and Zoje Resources
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.11 times less risky than Zoje Resources. The stock trades about -0.06 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Zoje Resources Investment on September 4, 2024 and sell it today you would earn a total of 165.00 from holding Zoje Resources Investment or generate 143.48% 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. Zoje Resources Investment
Performance |
| Timeline |
| Glodon Software |
| Zoje Resources Investment |
Glodon Software and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Zoje Resources
The main advantage of trading using opposite Glodon Software and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' 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 |
| Zoje Resources vs. Chengdu Kanghua Biological | Zoje Resources vs. Beijing Wantai Biological | Zoje Resources vs. Suzhou Novoprotein Scientific | Zoje Resources vs. Aluminum Corp of |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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