Correlation Between Shandong Polymer and Linewell Software
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Linewell Software Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Linewell Software.
Diversification Opportunities for Shandong Polymer and Linewell Software
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Linewell is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Linewell Software go up and down completely randomly.
Pair Corralation between Shandong Polymer and Linewell Software
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.89 times more return on investment than Linewell Software. However, Shandong Polymer Biochemicals is 1.12 times less risky than Linewell Software. It trades about -0.01 of its potential returns per unit of risk. Linewell Software Co is currently generating about -0.02 per unit of risk. If you would invest 557.00 in Shandong Polymer Biochemicals on October 16, 2024 and sell it today you would lose (149.00) from holding Shandong Polymer Biochemicals or give up 26.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Linewell Software Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Linewell Software |
Shandong Polymer and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Linewell Software
The main advantage of trading using opposite Shandong Polymer and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Beijing YanDong MicroElectronic | Shandong Polymer vs. Shenzhen Clou Electronics | Shandong Polymer vs. TongFu Microelectronics Co | Shandong Polymer vs. Malion New Materials |
| Linewell Software vs. Shandong Polymer Biochemicals | Linewell Software vs. Tianjin Ruixin Technology | Linewell Software vs. Olympic Circuit Technology | Linewell Software vs. Aba Chemicals Corp |
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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