Correlation Between Glodon Software and Gan Yuan
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By analyzing existing cross correlation between Glodon Software Co and Gan Yuan Foods, you can compare the effects of market volatilities on Glodon Software and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Gan Yuan.
Diversification Opportunities for Glodon Software and Gan Yuan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Gan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Glodon Software i.e., Glodon Software and Gan Yuan go up and down completely randomly.
Pair Corralation between Glodon Software and Gan Yuan
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Gan Yuan. In addition to that, Glodon Software is 1.27 times more volatile than Gan Yuan Foods. It trades about -0.06 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.03 per unit of volatility. If you would invest 6,720 in Gan Yuan Foods on September 13, 2024 and sell it today you would earn a total of 1,473 from holding Gan Yuan Foods or generate 21.92% 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. Gan Yuan Foods
Performance |
| Timeline |
| Glodon Software |
| Gan Yuan Foods |
Glodon Software and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Gan Yuan
The main advantage of trading using opposite Glodon Software and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Glodon Software vs. Ming Yang Smart | Glodon Software vs. 159681 | Glodon Software vs. 159005 | Glodon Software vs. Loctek Ergonomic Technology |
| Gan Yuan vs. Linewell Software Co | Gan Yuan vs. Glodon Software Co | Gan Yuan vs. Gem Year Industrial Co | Gan Yuan vs. Guangdong Jingyi Metal |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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