Correlation Between Anhui Huilong and Glodon Software
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Glodon Software Co, you can compare the effects of market volatilities on Anhui Huilong and Glodon Software 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 Anhui Huilong with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Glodon Software.
Diversification Opportunities for Anhui Huilong and Glodon Software
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Glodon is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Anhui Huilong 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 Anhui Huilong Agricultural are associated (or correlated) with Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Glodon Software go up and down completely randomly.
Pair Corralation between Anhui Huilong and Glodon Software
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.36 times more return on investment than Glodon Software. However, Anhui Huilong is 1.36 times more volatile than Glodon Software Co. It trades about 0.18 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.18 per unit of risk. If you would invest 541.00 in Anhui Huilong Agricultural on August 31, 2024 and sell it today you would earn a total of 96.00 from holding Anhui Huilong Agricultural or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Glodon Software Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Glodon Software |
Anhui Huilong and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Glodon Software
The main advantage of trading using opposite Anhui Huilong and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Anhui Huilong vs. Tongyu Communication | Anhui Huilong vs. Innovative Medical Management | Anhui Huilong vs. Xizi Clean Energy | Anhui Huilong vs. Shaanxi Meineng Clean |
| Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. NAURA Technology Group | Glodon Software vs. APT Medical | Glodon Software vs. Contemporary Amperex Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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