Correlation Between Guangdong Liantai and Glodon Software
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By analyzing existing cross correlation between Guangdong Liantai Environmental and Glodon Software Co, you can compare the effects of market volatilities on Guangdong Liantai 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 Guangdong Liantai with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and Glodon Software.
Diversification Opportunities for Guangdong Liantai and Glodon Software
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Glodon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Guangdong Liantai 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 Guangdong Liantai Environmental 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 Guangdong Liantai i.e., Guangdong Liantai and Glodon Software go up and down completely randomly.
Pair Corralation between Guangdong Liantai and Glodon Software
Assuming the 90 days trading horizon Guangdong Liantai is expected to generate 3.79 times less return on investment than Glodon Software. But when comparing it to its historical volatility, Guangdong Liantai Environmental is 1.65 times less risky than Glodon Software. It trades about 0.05 of its potential returns per unit of risk. Glodon Software Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,122 in Glodon Software Co on November 3, 2024 and sell it today you would earn a total of 46.00 from holding Glodon Software Co or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. Glodon Software Co
Performance |
| Timeline |
| Guangdong Liantai |
| Glodon Software |
Guangdong Liantai and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and Glodon Software
The main advantage of trading using opposite Guangdong Liantai and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai 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.| Guangdong Liantai vs. Ningbo Ligong Online | Guangdong Liantai vs. StarPower Semiconductor | Guangdong Liantai vs. Shanghai V Test Semiconductor | Guangdong Liantai vs. Senci Electric Machinery |
| Glodon Software vs. JCHX Mining Management | Glodon Software vs. Chongqing Brewery Co | Glodon Software vs. Hainan Mining Co | Glodon Software vs. Tsingtao Brewery Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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