Correlation Between Glodon Software and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Glodon Software Co and Road Environment Technology, you can compare the effects of market volatilities on Glodon Software and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Road Environment.
Diversification Opportunities for Glodon Software and Road Environment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Glodon and Road is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Glodon Software i.e., Glodon Software and Road Environment go up and down completely randomly.
Pair Corralation between Glodon Software and Road Environment
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Road Environment. In addition to that, Glodon Software is 1.07 times more volatile than Road Environment Technology. It trades about -0.26 of its total potential returns per unit of risk. Road Environment Technology is currently generating about -0.07 per unit of volatility. If you would invest 1,357 in Road Environment Technology on August 29, 2024 and sell it today you would lose (72.00) from holding Road Environment Technology or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Road Environment Technology
Performance |
| Timeline |
| Glodon Software |
| Road Environment Tec |
Glodon Software and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Road Environment
The main advantage of trading using opposite Glodon Software and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Glodon Software vs. China State Construction | Glodon Software vs. Huafa Industrial Co | Glodon Software vs. China International Capital | Glodon Software vs. Kweichow Moutai Co |
| Road Environment vs. Industrial and Commercial | Road Environment vs. Agricultural Bank of | Road Environment vs. China Construction Bank | Road Environment vs. Bank of China |
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
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |