Correlation Between Glodon Software and Anhui Huaheng
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By analyzing existing cross correlation between Glodon Software Co and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Glodon Software and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Anhui Huaheng.
Diversification Opportunities for Glodon Software and Anhui Huaheng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glodon and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Glodon Software i.e., Glodon Software and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Glodon Software and Anhui Huaheng
Assuming the 90 days trading horizon Glodon Software Co is expected to generate 1.33 times more return on investment than Anhui Huaheng. However, Glodon Software is 1.33 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.1 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.48 per unit of risk. If you would invest 1,205 in Glodon Software Co on October 26, 2024 and sell it today you would lose (67.00) from holding Glodon Software Co or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glodon Software Co vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Glodon Software |
| Anhui Huaheng Biotec |
Glodon Software and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glodon Software and Anhui Huaheng
The main advantage of trading using opposite Glodon Software and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Glodon Software vs. Bank of China | Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. PetroChina Co Ltd | Glodon Software vs. Bank of Communications |
| Anhui Huaheng vs. China Petroleum Chemical | Anhui Huaheng vs. PetroChina Co Ltd | Anhui Huaheng vs. China State Construction | Anhui Huaheng vs. China Railway Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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