Correlation Between Glodon Software and Jinsanjiang Silicon
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By analyzing existing cross correlation between Glodon Software Co and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Glodon Software and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Jinsanjiang Silicon.
Diversification Opportunities for Glodon Software and Jinsanjiang Silicon
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glodon and Jinsanjiang is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Glodon Software i.e., Glodon Software and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Glodon Software and Jinsanjiang Silicon
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.97 times less risky than Jinsanjiang Silicon. The stock trades about -0.43 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,166 in Jinsanjiang Silicon Material on October 13, 2024 and sell it today you would lose (185.00) from holding Jinsanjiang Silicon Material or give up 15.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Glodon Software |
| Jinsanjiang Silicon |
Glodon Software and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Jinsanjiang Silicon
The main advantage of trading using opposite Glodon Software and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Glodon Software vs. Guangdong Jingyi Metal | Glodon Software vs. Guocheng Mining Co | Glodon Software vs. Bus Online Co | Glodon Software vs. Western Metal Materials |
| Jinsanjiang Silicon vs. 360 Security Technology | Jinsanjiang Silicon vs. Servyou Software Group | Jinsanjiang Silicon vs. Linewell Software Co | Jinsanjiang Silicon vs. Glodon Software 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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