Correlation Between Glodon Software and Luyin Investment
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By analyzing existing cross correlation between Glodon Software Co and Luyin Investment Group, you can compare the effects of market volatilities on Glodon Software and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Luyin Investment.
Diversification Opportunities for Glodon Software and Luyin Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glodon and Luyin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Glodon Software i.e., Glodon Software and Luyin Investment go up and down completely randomly.
Pair Corralation between Glodon Software and Luyin Investment
Assuming the 90 days trading horizon Glodon Software is expected to generate 3.19 times less return on investment than Luyin Investment. In addition to that, Glodon Software is 1.87 times more volatile than Luyin Investment Group. It trades about 0.01 of its total potential returns per unit of risk. Luyin Investment Group is currently generating about 0.07 per unit of volatility. If you would invest 466.00 in Luyin Investment Group on October 13, 2024 and sell it today you would earn a total of 85.00 from holding Luyin Investment Group or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Luyin Investment Group
Performance |
| Timeline |
| Glodon Software |
| Luyin Investment |
Glodon Software and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Luyin Investment
The main advantage of trading using opposite Glodon Software and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Glodon Software vs. Guangdong Jingyi Metal | Glodon Software vs. Guocheng Mining Co | Glodon Software vs. Bus Online Co | Glodon Software vs. Western Metal Materials |
| Luyin Investment vs. Masterwork Machinery | Luyin Investment vs. Gifore Agricultural Machinery | Luyin Investment vs. Jointo Energy Investment | Luyin Investment vs. Sinomach General Machinery |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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