Correlation Between Guizhou Chanhen and Glodon Software
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Glodon Software Co, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Glodon Software.
Diversification Opportunities for Guizhou Chanhen and Glodon Software
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and Glodon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Glodon Software go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Glodon Software
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.93 times more return on investment than Glodon Software. However, Guizhou Chanhen Chemical is 1.08 times less risky than Glodon Software. It trades about 0.02 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.1 per unit of risk. If you would invest 2,200 in Guizhou Chanhen Chemical on November 6, 2024 and sell it today you would earn a total of 40.00 from holding Guizhou Chanhen Chemical or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Glodon Software Co
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Glodon Software |
Guizhou Chanhen and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Glodon Software
The main advantage of trading using opposite Guizhou Chanhen and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Shenyang Chemical Industry | Guizhou Chanhen vs. Maccura Biotechnology Co | Guizhou Chanhen vs. Xinxiang Chemical Fiber | Guizhou Chanhen vs. Nantong JiangTian Chemical |
| Glodon Software vs. Gem Year Industrial Co | Glodon Software vs. Tianjin Silvery Dragon | Glodon Software vs. Dymatic Chemicals | Glodon Software vs. Guangdong Silvere Sci |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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