Correlation Between Linewell Software and Shenwu Energy
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By analyzing existing cross correlation between Linewell Software Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Linewell Software and Shenwu Energy 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 Linewell Software with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Shenwu Energy.
Diversification Opportunities for Linewell Software and Shenwu Energy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Linewell and Shenwu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Linewell Software 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 Linewell Software Co are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Linewell Software i.e., Linewell Software and Shenwu Energy go up and down completely randomly.
Pair Corralation between Linewell Software and Shenwu Energy
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 1.26 times more return on investment than Shenwu Energy. However, Linewell Software is 1.26 times more volatile than Shenwu Energy Saving. It trades about 0.03 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.01 per unit of risk. If you would invest 1,184 in Linewell Software Co on September 12, 2024 and sell it today you would earn a total of 17.00 from holding Linewell Software Co or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Shenwu Energy Saving
Performance |
| Timeline |
| Linewell Software |
| Shenwu Energy Saving |
Linewell Software and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Shenwu Energy
The main advantage of trading using opposite Linewell Software and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Linewell Software vs. Gansu Jiu Steel | Linewell Software vs. Shandong Mining Machinery | Linewell Software vs. Aba Chemicals Corp | Linewell Software vs. BlueFocus Communication Group |
| Shenwu Energy vs. Agricultural Bank of | Shenwu Energy vs. Industrial and Commercial | Shenwu Energy vs. Bank of China | Shenwu Energy vs. PetroChina Co Ltd |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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