Correlation Between Linewell Software and Nanjing Putian
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By analyzing existing cross correlation between Linewell Software Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Linewell Software and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Nanjing Putian.
Diversification Opportunities for Linewell Software and Nanjing Putian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Linewell and Nanjing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Linewell Software i.e., Linewell Software and Nanjing Putian go up and down completely randomly.
Pair Corralation between Linewell Software and Nanjing Putian
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 0.68 times more return on investment than Nanjing Putian. However, Linewell Software Co is 1.46 times less risky than Nanjing Putian. It trades about 0.03 of its potential returns per unit of risk. Nanjing Putian Telecommunications 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. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Linewell Software |
| Nanjing Putian Telec |
Linewell Software and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Nanjing Putian
The main advantage of trading using opposite Linewell Software and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian'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 |
| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian vs. BlueFocus Communication Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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