Correlation Between Paycom Soft and Guoguang Electric
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By analyzing existing cross correlation between Paycom Soft and Guoguang Electric Co, you can compare the effects of market volatilities on Paycom Soft and Guoguang Electric 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 Paycom Soft with a short position of Guoguang Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paycom Soft and Guoguang Electric.
Diversification Opportunities for Paycom Soft and Guoguang Electric
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Paycom and Guoguang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Paycom Soft and Guoguang Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guoguang Electric and Paycom Soft 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 Paycom Soft are associated (or correlated) with Guoguang Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guoguang Electric has no effect on the direction of Paycom Soft i.e., Paycom Soft and Guoguang Electric go up and down completely randomly.
Pair Corralation between Paycom Soft and Guoguang Electric
Given the investment horizon of 90 days Paycom Soft is expected to under-perform the Guoguang Electric. But the stock apears to be less risky and, when comparing its historical volatility, Paycom Soft is 1.36 times less risky than Guoguang Electric. The stock trades about -0.01 of its potential returns per unit of risk. The Guoguang Electric Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 8,138 in Guoguang Electric Co on September 12, 2024 and sell it today you would lose (2,086) from holding Guoguang Electric Co or give up 25.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.25% |
| Values | Daily Returns |
Paycom Soft vs. Guoguang Electric Co
Performance |
| Timeline |
| Paycom Soft |
| Guoguang Electric |
Paycom Soft and Guoguang Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paycom Soft and Guoguang Electric
The main advantage of trading using opposite Paycom Soft and Guoguang Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paycom Soft position performs unexpectedly, Guoguang Electric 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 Guoguang Electric will offset losses from the drop in Guoguang Electric's long position.| Paycom Soft vs. Atlassian Corp Plc | Paycom Soft vs. Datadog | Paycom Soft vs. ServiceNow | Paycom Soft vs. Trade Desk |
| Guoguang Electric vs. Huafa Industrial Co | Guoguang Electric vs. By health | Guoguang Electric vs. Tibet Huayu Mining | Guoguang Electric vs. Hainan Mining 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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