Correlation Between Glodon Software and Shanghai OPM
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By analyzing existing cross correlation between Glodon Software Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Glodon Software and Shanghai OPM 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 OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Shanghai OPM.
Diversification Opportunities for Glodon Software and Shanghai OPM
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Glodon Software i.e., Glodon Software and Shanghai OPM go up and down completely randomly.
Pair Corralation between Glodon Software and Shanghai OPM
Assuming the 90 days trading horizon Glodon Software Co is expected to under-perform the Shanghai OPM. But the stock apears to be less risky and, when comparing its historical volatility, Glodon Software Co is 1.13 times less risky than Shanghai OPM. The stock trades about -0.06 of its potential returns per unit of risk. The Shanghai OPM Biosciences is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,416 in Shanghai OPM Biosciences on September 1, 2024 and sell it today you would lose (2,800) from holding Shanghai OPM Biosciences or give up 37.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Glodon Software Co vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Glodon Software |
| Shanghai OPM Biosciences |
Glodon Software and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Shanghai OPM
The main advantage of trading using opposite Glodon Software and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| Glodon Software vs. Nexchip Semiconductor Corp | Glodon Software vs. GigaDevice SemiconductorBeiji | Glodon Software vs. Nanjing OLO Home | Glodon Software vs. Will Semiconductor Co |
| Shanghai OPM vs. Glodon Software Co | Shanghai OPM vs. Sunwave Communications Co | Shanghai OPM vs. Jonjee Hi tech Industrial | Shanghai OPM vs. Guangdong Shenglu Telecommunication |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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