Correlation Between Huaneng Lancang and Glodon Software
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By analyzing existing cross correlation between Huaneng Lancang River and Glodon Software Co, you can compare the effects of market volatilities on Huaneng Lancang 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 Huaneng Lancang with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Lancang and Glodon Software.
Diversification Opportunities for Huaneng Lancang and Glodon Software
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaneng and Glodon is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Lancang River and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Huaneng Lancang 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 Huaneng Lancang River 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 Huaneng Lancang i.e., Huaneng Lancang and Glodon Software go up and down completely randomly.
Pair Corralation between Huaneng Lancang and Glodon Software
Assuming the 90 days trading horizon Huaneng Lancang River is expected to generate 0.36 times more return on investment than Glodon Software. However, Huaneng Lancang River is 2.8 times less risky than Glodon Software. It trades about -0.35 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.27 per unit of risk. If you would invest 1,010 in Huaneng Lancang River on August 29, 2024 and sell it today you would lose (87.00) from holding Huaneng Lancang River or give up 8.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaneng Lancang River vs. Glodon Software Co
Performance |
| Timeline |
| Huaneng Lancang River |
| Glodon Software |
Huaneng Lancang and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaneng Lancang and Glodon Software
The main advantage of trading using opposite Huaneng Lancang and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Lancang 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.| Huaneng Lancang vs. BYD Co Ltd | Huaneng Lancang vs. China Mobile Limited | Huaneng Lancang vs. Agricultural Bank of | Huaneng Lancang vs. Industrial and Commercial |
| Glodon Software vs. Agricultural Bank of | Glodon Software vs. Industrial and Commercial | Glodon Software vs. Bank of China | Glodon Software vs. PetroChina 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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