Correlation Between Dongxing Sec and Glodon Software
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By analyzing existing cross correlation between Dongxing Sec Co and Glodon Software Co, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Glodon Software.
Diversification Opportunities for Dongxing Sec and Glodon Software
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongxing and Glodon is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Dongxing Sec 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 Dongxing Sec Co 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 Dongxing Sec i.e., Dongxing Sec and Glodon Software go up and down completely randomly.
Pair Corralation between Dongxing Sec and Glodon Software
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.69 times more return on investment than Glodon Software. However, Dongxing Sec Co is 1.46 times less risky than Glodon Software. It trades about 0.03 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.08 per unit of risk. If you would invest 849.00 in Dongxing Sec Co on October 11, 2024 and sell it today you would earn a total of 239.00 from holding Dongxing Sec Co or generate 28.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dongxing Sec Co vs. Glodon Software Co
Performance |
| Timeline |
| Dongxing Sec |
| Glodon Software |
Dongxing Sec and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Glodon Software
The main advantage of trading using opposite Dongxing Sec and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Shijiazhuang Tonhe Electronics | Dongxing Sec vs. Financial Street Holdings | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. Beijing YanDong MicroElectronic |
| Glodon Software vs. Anhui Deli Household | Glodon Software vs. Xiangyang Automobile Bearing | Glodon Software vs. Ningbo Fangzheng Automobile | Glodon Software vs. Chongqing Changan Automobile |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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