Correlation Between Glodon Software and Wintao Communications
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By analyzing existing cross correlation between Glodon Software Co and Wintao Communications Co, you can compare the effects of market volatilities on Glodon Software and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Wintao Communications.
Diversification Opportunities for Glodon Software and Wintao Communications
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glodon and Wintao is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Glodon Software i.e., Glodon Software and Wintao Communications go up and down completely randomly.
Pair Corralation between Glodon Software and Wintao Communications
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Wintao Communications. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.5 times less risky than Wintao Communications. The stock trades about -0.28 of its potential returns per unit of risk. The Wintao Communications Co is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 2,456 in Wintao Communications Co on October 17, 2024 and sell it today you would lose (340.00) from holding Wintao Communications Co or give up 13.84% 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. Wintao Communications Co
Performance |
| Timeline |
| Glodon Software |
| Wintao Communications |
Glodon Software and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Wintao Communications
The main advantage of trading using opposite Glodon Software and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Glodon Software vs. Fangda Special Steel | Glodon Software vs. Olympic Circuit Technology | Glodon Software vs. Soyea Technology Co | Glodon Software vs. Eyebright Medical Technology |
| Wintao Communications vs. Fujian Boss Software | Wintao Communications vs. Linewell Software Co | Wintao Communications vs. Glodon Software Co | Wintao Communications vs. Aba Chemicals Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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