Correlation Between Guangzhou Shangpin and Glodon Software
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By analyzing existing cross correlation between Guangzhou Shangpin Home and Glodon Software Co, you can compare the effects of market volatilities on Guangzhou Shangpin 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 Guangzhou Shangpin with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and Glodon Software.
Diversification Opportunities for Guangzhou Shangpin and Glodon Software
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Glodon is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Guangzhou Shangpin 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 Guangzhou Shangpin Home 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 Guangzhou Shangpin i.e., Guangzhou Shangpin and Glodon Software go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and Glodon Software
Assuming the 90 days trading horizon Guangzhou Shangpin Home is expected to generate 0.92 times more return on investment than Glodon Software. However, Guangzhou Shangpin Home is 1.09 times less risky than Glodon Software. It trades about 0.05 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 1,429 in Guangzhou Shangpin Home on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Guangzhou Shangpin Home or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shangpin Home vs. Glodon Software Co
Performance |
| Timeline |
| Guangzhou Shangpin Home |
| Glodon Software |
Guangzhou Shangpin and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shangpin and Glodon Software
The main advantage of trading using opposite Guangzhou Shangpin and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin 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.| Guangzhou Shangpin vs. Lutian Machinery Co | Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Bank of China | Guangzhou Shangpin vs. Gansu Jiu Steel |
| Glodon Software vs. Gansu Jiu Steel | Glodon Software vs. Shandong Mining Machinery | Glodon Software vs. Aba Chemicals Corp | Glodon Software vs. BlueFocus Communication 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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