Correlation Between Glodon Software and Techshine Electronics
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By analyzing existing cross correlation between Glodon Software Co and Techshine Electronics Co, you can compare the effects of market volatilities on Glodon Software and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Techshine Electronics.
Diversification Opportunities for Glodon Software and Techshine Electronics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glodon and Techshine is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Glodon Software i.e., Glodon Software and Techshine Electronics go up and down completely randomly.
Pair Corralation between Glodon Software and Techshine Electronics
Assuming the 90 days trading horizon Glodon Software is expected to generate 1.48 times less return on investment than Techshine Electronics. But when comparing it to its historical volatility, Glodon Software Co is 1.28 times less risky than Techshine Electronics. It trades about 0.11 of its potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,979 in Techshine Electronics Co on November 3, 2024 and sell it today you would earn a total of 120.00 from holding Techshine Electronics Co or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Techshine Electronics Co
Performance |
| Timeline |
| Glodon Software |
| Techshine Electronics |
Glodon Software and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Techshine Electronics
The main advantage of trading using opposite Glodon Software and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Glodon Software vs. JCHX Mining Management | Glodon Software vs. Chongqing Brewery Co | Glodon Software vs. Hainan Mining Co | Glodon Software vs. Tsingtao Brewery 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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