Correlation Between G Bits and Linewell Software
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By analyzing existing cross correlation between G bits Network Technology and Linewell Software Co, you can compare the effects of market volatilities on G Bits 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 G Bits with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Linewell Software.
Diversification Opportunities for G Bits and Linewell Software
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603444 and Linewell is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and G Bits 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 G bits Network Technology 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 G Bits i.e., G Bits and Linewell Software go up and down completely randomly.
Pair Corralation between G Bits and Linewell Software
Assuming the 90 days trading horizon G Bits is expected to generate 2.28 times less return on investment than Linewell Software. But when comparing it to its historical volatility, G bits Network Technology is 1.21 times less risky than Linewell Software. It trades about 0.09 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 777.00 in Linewell Software Co on August 23, 2024 and sell it today you would earn a total of 366.00 from holding Linewell Software Co or generate 47.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Linewell Software Co
Performance |
| Timeline |
| G bits Network |
| Linewell Software |
G Bits and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Linewell Software
The main advantage of trading using opposite G Bits and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits 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.| G Bits vs. Shengyuan Environmental Protection | G Bits vs. Xinjiang Communications Construction | G Bits vs. Songz Automobile Air | G Bits vs. Sinomach Automobile Co |
| Linewell Software vs. BeiGene | Linewell Software vs. Kweichow Moutai Co | Linewell Software vs. Beijing Roborock Technology | Linewell Software vs. G bits Network 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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