Correlation Between Glodon Software and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Glodon Software Co and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Glodon Software and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shenzhen Zhongzhuang.
Diversification Opportunities for Glodon Software and Shenzhen Zhongzhuang
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glodon and Shenzhen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Glodon Software i.e., Glodon Software and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Glodon Software and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shenzhen Zhongzhuang. In addition to that, Glodon Software is 1.08 times more volatile than Shenzhen Zhongzhuang Construction. It trades about -0.18 of its total potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.8 per unit of volatility. If you would invest 235.00 in Shenzhen Zhongzhuang Construction on August 31, 2024 and sell it today you would earn a total of 170.00 from holding Shenzhen Zhongzhuang Construction or generate 72.34% 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. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Glodon Software |
| Shenzhen Zhongzhuang |
Glodon Software and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shenzhen Zhongzhuang
The main advantage of trading using opposite Glodon Software and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang'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 |
| Shenzhen Zhongzhuang vs. Cultural Investment Holdings | Shenzhen Zhongzhuang vs. Gome Telecom Equipment | Shenzhen Zhongzhuang vs. Bus Online Co | Shenzhen Zhongzhuang vs. Holitech Technology Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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