Correlation Between Glodon Software and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Glodon Software Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on Glodon Software and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Weihai Honglin.
Diversification Opportunities for Glodon Software and Weihai Honglin
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Glodon and Weihai is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Glodon Software i.e., Glodon Software and Weihai Honglin go up and down completely randomly.
Pair Corralation between Glodon Software and Weihai Honglin
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Weihai Honglin. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.72 times less risky than Weihai Honglin. The stock trades about -0.24 of its potential returns per unit of risk. The Weihai Honglin Electronic is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,385 in Weihai Honglin Electronic on October 25, 2024 and sell it today you would earn a total of 370.00 from holding Weihai Honglin Electronic or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Glodon Software |
| Weihai Honglin Electronic |
Glodon Software and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Weihai Honglin
The main advantage of trading using opposite Glodon Software and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin'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 |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Contemporary Amperex Technology | Weihai Honglin vs. Beijing Roborock Technology | Weihai Honglin vs. BYD Co Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |