Correlation Between Glodon Software and Shenzhen
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By analyzing existing cross correlation between Glodon Software Co and Shenzhen SC New, you can compare the effects of market volatilities on Glodon Software and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shenzhen.
Diversification Opportunities for Glodon Software and Shenzhen
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Glodon and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shenzhen SC New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SC New 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SC New has no effect on the direction of Glodon Software i.e., Glodon Software and Shenzhen go up and down completely randomly.
Pair Corralation between Glodon Software and Shenzhen
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.08 times less risky than Shenzhen. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen SC New is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 11,152 in Shenzhen SC New on September 4, 2024 and sell it today you would lose (4,129) from holding Shenzhen SC New or give up 37.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Shenzhen SC New
Performance |
| Timeline |
| Glodon Software |
| Shenzhen SC New |
Glodon Software and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shenzhen
The main advantage of trading using opposite Glodon Software and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Glodon Software vs. Guangzhou Shangpin Home | Glodon Software vs. Nanjing OLO Home | Glodon Software vs. Shandong Homey Aquatic | Glodon Software vs. Southchip Semiconductor Technology |
| Shenzhen vs. Shenwu Energy Saving | Shenzhen vs. Agricultural Bank of | Shenzhen vs. Panda Financial Holding | Shenzhen vs. Qilu Bank 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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