Correlation Between Glodon Software and Sinomach General
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By analyzing existing cross correlation between Glodon Software Co and Sinomach General Machinery, you can compare the effects of market volatilities on Glodon Software and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Sinomach General.
Diversification Opportunities for Glodon Software and Sinomach General
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glodon and Sinomach is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Glodon Software i.e., Glodon Software and Sinomach General go up and down completely randomly.
Pair Corralation between Glodon Software and Sinomach General
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Sinomach General. In addition to that, Glodon Software is 1.07 times more volatile than Sinomach General Machinery. It trades about -0.08 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.02 per unit of volatility. If you would invest 1,325 in Sinomach General Machinery on October 11, 2024 and sell it today you would earn a total of 139.00 from holding Sinomach General Machinery or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Glodon Software |
| Sinomach General Mac |
Glodon Software and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Sinomach General
The main advantage of trading using opposite Glodon Software and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Glodon Software vs. China Life Insurance | Glodon Software vs. Cinda Securities Co | Glodon Software vs. Piotech Inc A | Glodon Software vs. Dongxing Sec Co |
| Sinomach General vs. Bohai Leasing Co | Sinomach General vs. Shanghai Rightongene Biotechnology | Sinomach General vs. Yili Chuanning Biotechnology | Sinomach General vs. Wuhan Hvsen Biotechnology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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