Correlation Between Glodon Software and Beijing Ultrapower
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By analyzing existing cross correlation between Glodon Software Co and Beijing Ultrapower Software, you can compare the effects of market volatilities on Glodon Software and Beijing Ultrapower 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 Beijing Ultrapower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Beijing Ultrapower.
Diversification Opportunities for Glodon Software and Beijing Ultrapower
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glodon and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Beijing Ultrapower Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Ultrapower 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 Beijing Ultrapower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Ultrapower has no effect on the direction of Glodon Software i.e., Glodon Software and Beijing Ultrapower go up and down completely randomly.
Pair Corralation between Glodon Software and Beijing Ultrapower
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Beijing Ultrapower. In addition to that, Glodon Software is 1.12 times more volatile than Beijing Ultrapower Software. It trades about -0.01 of its total potential returns per unit of risk. Beijing Ultrapower Software is currently generating about 0.01 per unit of volatility. If you would invest 1,201 in Beijing Ultrapower Software on September 29, 2024 and sell it today you would earn a total of 1.00 from holding Beijing Ultrapower Software or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glodon Software Co vs. Beijing Ultrapower Software
Performance |
| Timeline |
| Glodon Software |
| Beijing Ultrapower |
Glodon Software and Beijing Ultrapower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Beijing Ultrapower
The main advantage of trading using opposite Glodon Software and Beijing Ultrapower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Beijing Ultrapower 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 Beijing Ultrapower will offset losses from the drop in Beijing Ultrapower's long position.| Glodon Software vs. Industrial and Commercial | Glodon Software vs. Agricultural Bank of | Glodon Software vs. China Construction Bank | Glodon Software vs. Bank of China |
| Beijing Ultrapower vs. Ming Yang Smart | Beijing Ultrapower vs. 159681 | Beijing Ultrapower vs. 159005 | Beijing Ultrapower vs. Loctek Ergonomic Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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