Correlation Between Changshu Tongrun and Glodon Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changshu Tongrun Auto and Glodon Software Co, you can compare the effects of market volatilities on Changshu Tongrun 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 Changshu Tongrun with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and Glodon Software.
Diversification Opportunities for Changshu Tongrun and Glodon Software
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changshu and Glodon is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Changshu Tongrun 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 Changshu Tongrun Auto 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 Changshu Tongrun i.e., Changshu Tongrun and Glodon Software go up and down completely randomly.
Pair Corralation between Changshu Tongrun and Glodon Software
Assuming the 90 days trading horizon Changshu Tongrun Auto is expected to generate 1.39 times more return on investment than Glodon Software. However, Changshu Tongrun is 1.39 times more volatile than Glodon Software Co. It trades about 0.01 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.27 per unit of risk. If you would invest 1,744 in Changshu Tongrun Auto on August 29, 2024 and sell it today you would lose (11.00) from holding Changshu Tongrun Auto or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. Glodon Software Co
Performance |
| Timeline |
| Changshu Tongrun Auto |
| Glodon Software |
Changshu Tongrun and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and Glodon Software
The main advantage of trading using opposite Changshu Tongrun and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun 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.| Changshu Tongrun vs. Loongson Technology Corp | Changshu Tongrun vs. Chongqing Road Bridge | Changshu Tongrun vs. Shenzhen Fortune Trend | Changshu Tongrun vs. Wuhan Xianglong Power |
| Glodon Software vs. Agricultural Bank of | Glodon Software vs. Industrial and Commercial | Glodon Software vs. Bank of China | Glodon Software vs. PetroChina Co Ltd |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |