Correlation Between Glodon Software and Zhangjiagang Elegant
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By analyzing existing cross correlation between Glodon Software Co and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Glodon Software and Zhangjiagang Elegant 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 Glodon Software with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glodon Software and Zhangjiagang Elegant.
Diversification Opportunities for Glodon Software and Zhangjiagang Elegant
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glodon and Zhangjiagang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Glodon Software Co and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and Glodon Software 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 Glodon Software Co are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Glodon Software i.e., Glodon Software and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Glodon Software and Zhangjiagang Elegant
Assuming the 90 days trading horizon Glodon Software Co is expected to generate 1.38 times more return on investment than Zhangjiagang Elegant. However, Glodon Software is 1.38 times more volatile than Zhangjiagang Elegant Home. It trades about 0.13 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.13 per unit of risk. If you would invest 959.00 in Glodon Software Co on September 21, 2024 and sell it today you would earn a total of 313.00 from holding Glodon Software Co or generate 32.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Glodon Software Co vs. Zhangjiagang Elegant Home
Performance |
Timeline |
Glodon Software |
Zhangjiagang Elegant Home |
Glodon Software and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glodon Software and Zhangjiagang Elegant
The main advantage of trading using opposite Glodon Software and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glodon Software position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.Glodon Software vs. Maoming Petro Chemical Shihua | ||
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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