Correlation Between Nantong Haixing and Glodon Software
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By analyzing existing cross correlation between Nantong Haixing Electronics and Glodon Software Co, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Glodon Software.
Diversification Opportunities for Nantong Haixing and Glodon Software
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nantong and Glodon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and Glodon Software go up and down completely randomly.
Pair Corralation between Nantong Haixing and Glodon Software
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 0.72 times more return on investment than Glodon Software. However, Nantong Haixing Electronics is 1.39 times less risky than Glodon Software. It trades about 0.01 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.03 per unit of risk. If you would invest 1,471 in Nantong Haixing Electronics on September 3, 2024 and sell it today you would lose (61.00) from holding Nantong Haixing Electronics or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Glodon Software Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| Glodon Software |
Nantong Haixing and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Glodon Software
The main advantage of trading using opposite Nantong Haixing and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Glodon Software Co | Nantong Haixing vs. Hangzhou Pinming Software | Nantong Haixing vs. Shenzhen Glory Medical | Nantong Haixing vs. CareRay Digital Medical |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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