Correlation Between Zhengzhou Coal and Glodon Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhengzhou Coal Mining and Glodon Software Co, you can compare the effects of market volatilities on Zhengzhou Coal 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 Zhengzhou Coal with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Glodon Software.
Diversification Opportunities for Zhengzhou Coal and Glodon Software
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Glodon is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Zhengzhou Coal 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 Zhengzhou Coal Mining 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 Zhengzhou Coal i.e., Zhengzhou Coal and Glodon Software go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Glodon Software
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.43 times more return on investment than Glodon Software. However, Zhengzhou Coal Mining is 2.3 times less risky than Glodon Software. It trades about 0.28 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.01 per unit of risk. If you would invest 1,225 in Zhengzhou Coal Mining on September 29, 2024 and sell it today you would earn a total of 81.00 from holding Zhengzhou Coal Mining or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Glodon Software Co
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Glodon Software |
Zhengzhou Coal and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Glodon Software
The main advantage of trading using opposite Zhengzhou Coal and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal 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.| Zhengzhou Coal vs. BTG Hotels Group | Zhengzhou Coal vs. Everdisplay Optronics Shanghai | Zhengzhou Coal vs. Xinke Material | Zhengzhou Coal vs. Ningbo Tip Rubber |
| Glodon Software vs. Industrial and Commercial | Glodon Software vs. Agricultural Bank of | Glodon Software vs. China Construction Bank | Glodon Software vs. Bank of China |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |