Correlation Between Glodon Software and Kuangda Technology
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By analyzing existing cross correlation between Glodon Software Co and Kuangda Technology Group, you can compare the effects of market volatilities on Glodon Software and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Kuangda Technology.
Diversification Opportunities for Glodon Software and Kuangda Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glodon and Kuangda is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Glodon Software i.e., Glodon Software and Kuangda Technology go up and down completely randomly.
Pair Corralation between Glodon Software and Kuangda Technology
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Kuangda Technology. In addition to that, Glodon Software is 1.16 times more volatile than Kuangda Technology Group. It trades about -0.18 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.07 per unit of volatility. If you would invest 551.00 in Kuangda Technology Group on August 31, 2024 and sell it today you would lose (29.00) from holding Kuangda Technology Group or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glodon Software Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Glodon Software |
| Kuangda Technology |
Glodon Software and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Kuangda Technology
The main advantage of trading using opposite Glodon Software and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. NAURA Technology Group | Glodon Software vs. APT Medical | Glodon Software vs. Contemporary Amperex Technology |
| Kuangda Technology vs. China State Construction | Kuangda Technology vs. China Merchants Shekou | Kuangda Technology vs. Huafa Industrial Co | Kuangda Technology vs. China International Capital |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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