Correlation Between Glodon Software and Xiamen Jihong
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By analyzing existing cross correlation between Glodon Software Co and Xiamen Jihong Package, you can compare the effects of market volatilities on Glodon Software and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Xiamen Jihong.
Diversification Opportunities for Glodon Software and Xiamen Jihong
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Xiamen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Glodon Software i.e., Glodon Software and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Glodon Software and Xiamen Jihong
Assuming the 90 days trading horizon Glodon Software Co is expected to generate 1.13 times more return on investment than Xiamen Jihong. However, Glodon Software is 1.13 times more volatile than Xiamen Jihong Package. It trades about 0.02 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.02 per unit of risk. If you would invest 1,157 in Glodon Software Co on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Glodon Software Co or generate 0.95% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Glodon Software |
| Xiamen Jihong Package |
Glodon Software and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Xiamen Jihong
The main advantage of trading using opposite Glodon Software and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Glodon Software vs. JCHX Mining Management | Glodon Software vs. Chongqing Brewery Co | Glodon Software vs. Hainan Mining Co | Glodon Software vs. Tsingtao Brewery Co |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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