Correlation Between Glodon Software and Shanghai Yanpu
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By analyzing existing cross correlation between Glodon Software Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Glodon Software and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shanghai Yanpu.
Diversification Opportunities for Glodon Software and Shanghai Yanpu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glodon and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Glodon Software i.e., Glodon Software and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Glodon Software and Shanghai Yanpu
Assuming the 90 days trading horizon Glodon Software is expected to generate 1.19 times less return on investment than Shanghai Yanpu. In addition to that, Glodon Software is 1.29 times more volatile than Shanghai Yanpu Metal. It trades about 0.14 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.22 per unit of volatility. If you would invest 2,629 in Shanghai Yanpu Metal on September 4, 2024 and sell it today you would earn a total of 1,307 from holding Shanghai Yanpu Metal or generate 49.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Glodon Software |
| Shanghai Yanpu Metal |
Glodon Software and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shanghai Yanpu
The main advantage of trading using opposite Glodon Software and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Glodon Software vs. Guangzhou Shangpin Home | Glodon Software vs. Nanjing OLO Home | Glodon Software vs. Shandong Homey Aquatic | Glodon Software vs. Southchip Semiconductor Technology |
| Shanghai Yanpu vs. Dhc Software Co | Shanghai Yanpu vs. Inspur Software Co | Shanghai Yanpu vs. Keda Clean Energy | Shanghai Yanpu vs. Glodon Software Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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