Correlation Between Bank of Communications and Glodon Software
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By analyzing existing cross correlation between Bank of Communications and Glodon Software Co, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Glodon Software.
Diversification Opportunities for Bank of Communications and Glodon Software
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Glodon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Glodon Software go up and down completely randomly.
Pair Corralation between Bank of Communications and Glodon Software
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.43 times more return on investment than Glodon Software. However, Bank of Communications is 2.31 times less risky than Glodon Software. It trades about 0.08 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 453.00 in Bank of Communications on October 28, 2024 and sell it today you would earn a total of 264.00 from holding Bank of Communications or generate 58.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Glodon Software Co
Performance |
| Timeline |
| Bank of Communications |
| Glodon Software |
Bank of Communications and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Glodon Software
The main advantage of trading using opposite Bank of Communications and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Guangdong Qunxing Toys | Bank of Communications vs. JuneYao Dairy Co | Bank of Communications vs. Xiwang Foodstuffs Co | Bank of Communications vs. Suzhou Xingye Material |
| Glodon Software vs. Guangzhou Restaurants Group | Glodon Software vs. Ningxia Younglight Chemicals | Glodon Software vs. Guizhou Chanhen Chemical | Glodon Software vs. Sihui Fuji Electronics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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