Correlation Between Glodon Software and Hubei Xingfa
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By analyzing existing cross correlation between Glodon Software Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Glodon Software and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Hubei Xingfa.
Diversification Opportunities for Glodon Software and Hubei Xingfa
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Hubei is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Glodon Software i.e., Glodon Software and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Glodon Software and Hubei Xingfa
Assuming the 90 days trading horizon Glodon Software Co is expected to generate 2.5 times more return on investment than Hubei Xingfa. However, Glodon Software is 2.5 times more volatile than Hubei Xingfa Chemicals. It trades about -0.01 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.18 per unit of risk. If you would invest 1,235 in Glodon Software Co on September 29, 2024 and sell it today you would lose (13.00) from holding Glodon Software Co or give up 1.05% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Glodon Software |
| Hubei Xingfa Chemicals |
Glodon Software and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Hubei Xingfa
The main advantage of trading using opposite Glodon Software and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Glodon Software vs. Industrial and Commercial | Glodon Software vs. Agricultural Bank of | Glodon Software vs. China Construction Bank | Glodon Software vs. Bank of China |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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