Correlation Between Glodon Software and Shandong Pharmaceutical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Glodon Software Co and Shandong Pharmaceutical Glass, you can compare the effects of market volatilities on Glodon Software and Shandong Pharmaceutical 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 Shandong Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shandong Pharmaceutical.
Diversification Opportunities for Glodon Software and Shandong Pharmaceutical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glodon and Shandong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shandong Pharmaceutical Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Pharmaceutical 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 Shandong Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Pharmaceutical has no effect on the direction of Glodon Software i.e., Glodon Software and Shandong Pharmaceutical go up and down completely randomly.
Pair Corralation between Glodon Software and Shandong Pharmaceutical
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shandong Pharmaceutical. In addition to that, Glodon Software is 2.25 times more volatile than Shandong Pharmaceutical Glass. It trades about -0.18 of its total potential returns per unit of risk. Shandong Pharmaceutical Glass is currently generating about -0.14 per unit of volatility. If you would invest 2,585 in Shandong Pharmaceutical Glass on September 12, 2024 and sell it today you would lose (97.00) from holding Shandong Pharmaceutical Glass or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glodon Software Co vs. Shandong Pharmaceutical Glass
Performance |
| Timeline |
| Glodon Software |
| Shandong Pharmaceutical |
Glodon Software and Shandong Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shandong Pharmaceutical
The main advantage of trading using opposite Glodon Software and Shandong Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shandong Pharmaceutical 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 Shandong Pharmaceutical will offset losses from the drop in Shandong Pharmaceutical's long position.| Glodon Software vs. Gansu Jiu Steel | Glodon Software vs. Shandong Mining Machinery | Glodon Software vs. Aba Chemicals Corp | Glodon Software vs. BlueFocus Communication Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |