Correlation Between Nanjing Yunhai and Linewell Software
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By analyzing existing cross correlation between Nanjing Yunhai Special and Linewell Software Co, you can compare the effects of market volatilities on Nanjing Yunhai and Linewell 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 Nanjing Yunhai with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Yunhai and Linewell Software.
Diversification Opportunities for Nanjing Yunhai and Linewell Software
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Linewell is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Yunhai Special and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Nanjing Yunhai 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 Nanjing Yunhai Special are associated (or correlated) with Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Nanjing Yunhai i.e., Nanjing Yunhai and Linewell Software go up and down completely randomly.
Pair Corralation between Nanjing Yunhai and Linewell Software
Assuming the 90 days trading horizon Nanjing Yunhai Special is expected to generate 1.13 times more return on investment than Linewell Software. However, Nanjing Yunhai is 1.13 times more volatile than Linewell Software Co. It trades about 0.23 of its potential returns per unit of risk. Linewell Software Co is currently generating about -0.01 per unit of risk. If you would invest 1,116 in Nanjing Yunhai Special on September 13, 2024 and sell it today you would earn a total of 215.00 from holding Nanjing Yunhai Special or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Yunhai Special vs. Linewell Software Co
Performance |
| Timeline |
| Nanjing Yunhai Special |
| Linewell Software |
Nanjing Yunhai and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Yunhai and Linewell Software
The main advantage of trading using opposite Nanjing Yunhai and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Yunhai position performs unexpectedly, Linewell 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Nanjing Yunhai vs. Ye Chiu Metal | Nanjing Yunhai vs. Qingdao Choho Industrial | Nanjing Yunhai vs. Hainan Mining Co | Nanjing Yunhai vs. Chengtun Mining Group |
| Linewell Software vs. Ming Yang Smart | Linewell Software vs. 159681 | Linewell Software vs. 159005 | Linewell Software vs. Loctek Ergonomic Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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