Correlation Between Glodon Software and Hua Xia
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By analyzing existing cross correlation between Glodon Software Co and Hua Xia Bank, you can compare the effects of market volatilities on Glodon Software and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Hua Xia.
Diversification Opportunities for Glodon Software and Hua Xia
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Glodon and Hua is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Glodon Software i.e., Glodon Software and Hua Xia go up and down completely randomly.
Pair Corralation between Glodon Software and Hua Xia
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Hua Xia. In addition to that, Glodon Software is 2.04 times more volatile than Hua Xia Bank. It trades about -0.24 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.3 per unit of volatility. If you would invest 789.00 in Hua Xia Bank on October 25, 2024 and sell it today you would lose (55.00) from holding Hua Xia Bank or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Hua Xia Bank
Performance |
| Timeline |
| Glodon Software |
| Hua Xia Bank |
Glodon Software and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Hua Xia
The main advantage of trading using opposite Glodon Software and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Guangzhou Tinci Materials | Hua Xia vs. Nanjing Putian Telecommunications | Hua Xia vs. Ping An Insurance | Hua Xia vs. Wuhan Yangtze Communication |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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