Correlation Between Metallurgical and Glodon Software

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Metallurgical and Glodon Software at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Metallurgical and Glodon Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metallurgical of and Glodon Software Co, you can compare the effects of market volatilities on Metallurgical 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 Metallurgical with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Glodon Software.

Diversification Opportunities for Metallurgical and Glodon Software

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Metallurgical and Glodon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software and Metallurgical 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 Metallurgical of 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 Metallurgical i.e., Metallurgical and Glodon Software go up and down completely randomly.

Pair Corralation between Metallurgical and Glodon Software

Assuming the 90 days trading horizon Metallurgical of is expected to generate 0.76 times more return on investment than Glodon Software. However, Metallurgical of is 1.31 times less risky than Glodon Software. It trades about -0.03 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.09 per unit of risk. If you would invest  355.00  in Metallurgical of on October 3, 2024 and sell it today you would lose (25.00) from holding Metallurgical of or give up 7.04% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Metallurgical of  vs.  Glodon Software Co

 Performance 
       Timeline  
Metallurgical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Metallurgical of has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Metallurgical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Glodon Software 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Glodon Software Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Metallurgical and Glodon Software Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Metallurgical and Glodon Software

The main advantage of trading using opposite Metallurgical and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical 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.
The idea behind Metallurgical of and Glodon Software Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Money Managers
Screen money managers from public funds and ETFs managed around the world
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world