Correlation Between Glodon Software and Shandong Longquan
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By analyzing existing cross correlation between Glodon Software Co and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Glodon Software and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shandong Longquan.
Diversification Opportunities for Glodon Software and Shandong Longquan
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Glodon and Shandong is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Glodon Software i.e., Glodon Software and Shandong Longquan go up and down completely randomly.
Pair Corralation between Glodon Software and Shandong Longquan
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shandong Longquan. In addition to that, Glodon Software is 1.62 times more volatile than Shandong Longquan Pipeline. It trades about -0.11 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.17 per unit of volatility. If you would invest 456.00 in Shandong Longquan Pipeline on October 29, 2024 and sell it today you would earn a total of 24.00 from holding Shandong Longquan Pipeline or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Glodon Software |
| Shandong Longquan |
Glodon Software and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shandong Longquan
The main advantage of trading using opposite Glodon Software and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Glodon Software vs. Orinko Advanced Plastics | Glodon Software vs. Jiangnan Mould Plastic | Glodon Software vs. Chongqing Sulian Plastic | Glodon Software vs. Ningbo Tip Rubber |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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