Correlation Between Linewell Software and Glodon Software
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By analyzing existing cross correlation between Linewell Software Co and Glodon Software Co, you can compare the effects of market volatilities on Linewell Software and Glodon 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 Linewell Software with a short position of Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Glodon Software.
Diversification Opportunities for Linewell Software and Glodon Software
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Linewell and Glodon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Linewell Software i.e., Linewell Software and Glodon Software go up and down completely randomly.
Pair Corralation between Linewell Software and Glodon Software
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 1.01 times more return on investment than Glodon Software. However, Linewell Software is 1.01 times more volatile than Glodon Software Co. It trades about -0.01 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.07 per unit of risk. If you would invest 1,470 in Linewell Software Co on August 28, 2024 and sell it today you would lose (341.00) from holding Linewell Software Co or give up 23.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Glodon Software Co
Performance |
| Timeline |
| Linewell Software |
| Glodon Software |
Linewell Software and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Glodon Software
The main advantage of trading using opposite Linewell Software and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Glodon 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Linewell Software vs. Agricultural Bank of | Linewell Software vs. Industrial and Commercial | Linewell Software vs. Bank of China | Linewell Software vs. PetroChina Co Ltd |
| Glodon Software vs. Agricultural Bank of | Glodon Software vs. Industrial and Commercial | Glodon Software vs. Bank of China | Glodon Software 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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