Correlation Between Thunder Software and Guotai Epoint
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By analyzing existing cross correlation between Thunder Software Technology and Guotai Epoint Software, you can compare the effects of market volatilities on Thunder Software and Guotai Epoint 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 Thunder Software with a short position of Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Software and Guotai Epoint.
Diversification Opportunities for Thunder Software and Guotai Epoint
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thunder and Guotai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Software Technology and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software and Thunder 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 Thunder Software Technology are associated (or correlated) with Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Thunder Software i.e., Thunder Software and Guotai Epoint go up and down completely randomly.
Pair Corralation between Thunder Software and Guotai Epoint
Assuming the 90 days trading horizon Thunder Software Technology is expected to generate 1.03 times more return on investment than Guotai Epoint. However, Thunder Software is 1.03 times more volatile than Guotai Epoint Software. It trades about -0.02 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.03 per unit of risk. If you would invest 11,095 in Thunder Software Technology on October 25, 2024 and sell it today you would lose (5,567) from holding Thunder Software Technology or give up 50.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Software Technology vs. Guotai Epoint Software
Performance |
| Timeline |
| Thunder Software Tec |
| Guotai Epoint Software |
Thunder Software and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Software and Guotai Epoint
The main advantage of trading using opposite Thunder Software and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Software position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Thunder Software vs. Kweichow Moutai Co | Thunder Software vs. NAURA Technology Group | Thunder Software vs. APT Medical | Thunder Software vs. BYD Co Ltd |
| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint vs. BYD Co Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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