Correlation Between Hainan Mining and Glodon Software
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By analyzing existing cross correlation between Hainan Mining Co and Glodon Software Co, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Glodon Software.
Diversification Opportunities for Hainan Mining and Glodon Software
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hainan and Glodon is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining 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 Hainan Mining 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 Hainan Mining 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 Hainan Mining i.e., Hainan Mining and Glodon Software go up and down completely randomly.
Pair Corralation between Hainan Mining and Glodon Software
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.26 times more return on investment than Glodon Software. However, Hainan Mining is 1.26 times more volatile than Glodon Software Co. It trades about 0.1 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 703.00 in Hainan Mining Co on September 29, 2024 and sell it today you would earn a total of 41.00 from holding Hainan Mining Co or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Glodon Software Co
Performance |
| Timeline |
| Hainan Mining |
| Glodon Software |
Hainan Mining and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Glodon Software
The main advantage of trading using opposite Hainan Mining and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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