Correlation Between Industrial Bank and Linewell Software
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By analyzing existing cross correlation between Industrial Bank Co and Linewell Software Co, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Linewell Software.
Diversification Opportunities for Industrial Bank and Linewell Software
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Linewell is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and Linewell Software go up and down completely randomly.
Pair Corralation between Industrial Bank and Linewell Software
Assuming the 90 days trading horizon Industrial Bank is expected to generate 1.06 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Industrial Bank Co is 2.19 times less risky than Linewell Software. It trades about 0.08 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 887.00 in Linewell Software Co on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Linewell Software Co or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Linewell Software Co
Performance |
| Timeline |
| Industrial Bank |
| Linewell Software |
Industrial Bank and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Linewell Software
The main advantage of trading using opposite Industrial Bank and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Eastroc Beverage Group | Industrial Bank vs. Qingdao Foods Co | Industrial Bank vs. Great Sun Foods Co |
| Linewell Software vs. Qiaoyin Environmental Tech | Linewell Software vs. Jiangsu Yueda Investment | Linewell Software vs. Shenzhen MYS Environmental | Linewell Software vs. Gansu Jiu Steel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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