Correlation Between Chengdu Bright and Glodon Software
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By analyzing existing cross correlation between Chengdu Bright Eye and Glodon Software Co, you can compare the effects of market volatilities on Chengdu Bright 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 Chengdu Bright with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Bright and Glodon Software.
Diversification Opportunities for Chengdu Bright and Glodon Software
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Glodon is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Bright Eye and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Chengdu Bright 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 Chengdu Bright Eye 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 Chengdu Bright i.e., Chengdu Bright and Glodon Software go up and down completely randomly.
Pair Corralation between Chengdu Bright and Glodon Software
Assuming the 90 days trading horizon Chengdu Bright Eye is expected to generate 1.23 times more return on investment than Glodon Software. However, Chengdu Bright is 1.23 times more volatile than Glodon Software Co. It trades about 0.01 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.06 per unit of risk. If you would invest 6,470 in Chengdu Bright Eye on September 15, 2024 and sell it today you would lose (1,043) from holding Chengdu Bright Eye or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Bright Eye vs. Glodon Software Co
Performance |
| Timeline |
| Chengdu Bright Eye |
| Glodon Software |
Chengdu Bright and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Bright and Glodon Software
The main advantage of trading using opposite Chengdu Bright and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Bright 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.| Chengdu Bright vs. Glodon Software Co | Chengdu Bright vs. Linewell Software Co | Chengdu Bright vs. Xilong Chemical Co | Chengdu Bright vs. Dhc Software Co |
| Glodon Software vs. Ming Yang Smart | Glodon Software vs. 159681 | Glodon Software vs. 159005 | Glodon Software vs. Loctek Ergonomic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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