Correlation Between Glodon Software and Jilin Jlu
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By analyzing existing cross correlation between Glodon Software Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Glodon Software and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Jilin Jlu.
Diversification Opportunities for Glodon Software and Jilin Jlu
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glodon and Jilin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Glodon Software i.e., Glodon Software and Jilin Jlu go up and down completely randomly.
Pair Corralation between Glodon Software and Jilin Jlu
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.13 times less risky than Jilin Jlu. The stock trades about -0.15 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Jilin Jlu Communication on October 25, 2024 and sell it today you would lose (52.00) from holding Jilin Jlu Communication or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Glodon Software |
| Jilin Jlu Communication |
Glodon Software and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Jilin Jlu
The main advantage of trading using opposite Glodon Software and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. NAURA Technology Group | Glodon Software vs. APT Medical | Glodon Software vs. BYD Co Ltd |
| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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