Correlation Between Glodon Software and Hainan Mining
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By analyzing existing cross correlation between Glodon Software Co and Hainan Mining Co, you can compare the effects of market volatilities on Glodon Software and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Hainan Mining.
Diversification Opportunities for Glodon Software and Hainan Mining
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glodon and Hainan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Glodon Software i.e., Glodon Software and Hainan Mining go up and down completely randomly.
Pair Corralation between Glodon Software and Hainan Mining
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Hainan Mining. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.26 times less risky than Hainan Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Hainan Mining Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 703.00 in Hainan Mining Co on September 29, 2024 and sell it today you would earn a total of 41.00 from holding Hainan Mining Co or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Hainan Mining Co
Performance |
| Timeline |
| Glodon Software |
| Hainan Mining |
Glodon Software and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Hainan Mining
The main advantage of trading using opposite Glodon Software and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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