Correlation Between Gansu Jiu and Linewell Software
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By analyzing existing cross correlation between Gansu Jiu Steel and Linewell Software Co, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Linewell Software.
Diversification Opportunities for Gansu Jiu and Linewell Software
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Linewell is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Linewell Software go up and down completely randomly.
Pair Corralation between Gansu Jiu and Linewell Software
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 3.65 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.47 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,184 in Linewell Software Co on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Linewell Software Co or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Linewell Software Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Linewell Software |
Gansu Jiu and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Linewell Software
The main advantage of trading using opposite Gansu Jiu and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Linewell Software vs. Gansu Jiu Steel | Linewell Software vs. Shandong Mining Machinery | Linewell Software vs. Aba Chemicals Corp | Linewell Software vs. BlueFocus Communication Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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