Correlation Between Glodon Software and Cangzhou Mingzhu
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By analyzing existing cross correlation between Glodon Software Co and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Glodon Software and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Cangzhou Mingzhu.
Diversification Opportunities for Glodon Software and Cangzhou Mingzhu
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Cangzhou is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Glodon Software i.e., Glodon Software and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Glodon Software and Cangzhou Mingzhu
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Cangzhou Mingzhu. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.24 times less risky than Cangzhou Mingzhu. The stock trades about -0.19 of its potential returns per unit of risk. The Cangzhou Mingzhu Plastic is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 366.00 in Cangzhou Mingzhu Plastic on September 14, 2024 and sell it today you would earn a total of 33.00 from holding Cangzhou Mingzhu Plastic or generate 9.02% 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. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Glodon Software |
| Cangzhou Mingzhu Plastic |
Glodon Software and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Cangzhou Mingzhu
The main advantage of trading using opposite Glodon Software and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Glodon Software vs. Ming Yang Smart | Glodon Software vs. 159681 | Glodon Software vs. 159005 | Glodon Software vs. Loctek Ergonomic Technology |
| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Glodon Software Co | Cangzhou Mingzhu vs. CITIC Securities Co | Cangzhou Mingzhu vs. Shanghai Suochen Information |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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