Correlation Between Huitong Construction and Glodon Software
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By analyzing existing cross correlation between Huitong Construction Group and Glodon Software Co, you can compare the effects of market volatilities on Huitong Construction 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 Huitong Construction with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Glodon Software.
Diversification Opportunities for Huitong Construction and Glodon Software
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huitong and Glodon is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Huitong Construction 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 Huitong Construction Group 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 Huitong Construction i.e., Huitong Construction and Glodon Software go up and down completely randomly.
Pair Corralation between Huitong Construction and Glodon Software
Assuming the 90 days trading horizon Huitong Construction Group is expected to generate 0.83 times more return on investment than Glodon Software. However, Huitong Construction Group is 1.21 times less risky than Glodon Software. It trades about -0.02 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.06 per unit of risk. If you would invest 821.00 in Huitong Construction Group on September 3, 2024 and sell it today you would lose (298.00) from holding Huitong Construction Group or give up 36.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huitong Construction Group vs. Glodon Software Co
Performance |
| Timeline |
| Huitong Construction |
| Glodon Software |
Huitong Construction and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huitong Construction and Glodon Software
The main advantage of trading using opposite Huitong Construction and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction 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.| Huitong Construction vs. Cultural Investment Holdings | Huitong Construction vs. Gome Telecom Equipment | Huitong Construction vs. Bus Online Co | Huitong Construction vs. Holitech Technology Co |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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