Correlation Between Linewell Software and Invengo Information
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By analyzing existing cross correlation between Linewell Software Co and Invengo Information Technology, you can compare the effects of market volatilities on Linewell Software and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Invengo Information.
Diversification Opportunities for Linewell Software and Invengo Information
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Linewell and Invengo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Linewell Software i.e., Linewell Software and Invengo Information go up and down completely randomly.
Pair Corralation between Linewell Software and Invengo Information
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 2.85 times more return on investment than Invengo Information. However, Linewell Software is 2.85 times more volatile than Invengo Information Technology. It trades about 0.3 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.38 per unit of risk. If you would invest 1,247 in Linewell Software Co on November 27, 2024 and sell it today you would earn a total of 313.00 from holding Linewell Software Co or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Invengo Information Technology
Performance |
| Timeline |
| Linewell Software |
| Invengo Information |
Linewell Software and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Invengo Information
The main advantage of trading using opposite Linewell Software and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Linewell Software vs. Westone Information Industry | Linewell Software vs. Shenzhen Bioeasy Biotechnology | Linewell Software vs. Beijing Watertek Information | Linewell Software vs. Biwin Storage Technology |
| Invengo Information vs. Metro Investment Development | Invengo Information vs. Tieling Newcity Investment | Invengo Information vs. Jiajia Food Group | Invengo Information vs. Henan Shuanghui Investment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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