Correlation Between Glodon Software and Citic Guoan
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By analyzing existing cross correlation between Glodon Software Co and Citic Guoan Wine, you can compare the effects of market volatilities on Glodon Software and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Citic Guoan.
Diversification Opportunities for Glodon Software and Citic Guoan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Citic is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Glodon Software i.e., Glodon Software and Citic Guoan go up and down completely randomly.
Pair Corralation between Glodon Software and Citic Guoan
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Citic Guoan. In addition to that, Glodon Software is 1.19 times more volatile than Citic Guoan Wine. It trades about -0.07 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of volatility. If you would invest 767.00 in Citic Guoan Wine on August 31, 2024 and sell it today you would lose (148.00) from holding Citic Guoan Wine or give up 19.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Citic Guoan Wine
Performance |
| Timeline |
| Glodon Software |
| Citic Guoan Wine |
Glodon Software and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Citic Guoan
The main advantage of trading using opposite Glodon Software and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. NAURA Technology Group | Glodon Software vs. APT Medical | Glodon Software vs. Contemporary Amperex Technology |
| Citic Guoan vs. Shuhua Sports Co | Citic Guoan vs. Everdisplay Optronics Shanghai | Citic Guoan vs. Xiandai Investment Co | Citic Guoan vs. Jiangsu Financial Leasing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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