Correlation Between Linewell Software and Shanghai Phichem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Linewell Software Co and Shanghai Phichem Material, you can compare the effects of market volatilities on Linewell Software and Shanghai Phichem 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 Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Shanghai Phichem.
Diversification Opportunities for Linewell Software and Shanghai Phichem
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Linewell and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material 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 Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Linewell Software i.e., Linewell Software and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Linewell Software and Shanghai Phichem
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 1.01 times more return on investment than Shanghai Phichem. However, Linewell Software is 1.01 times more volatile than Shanghai Phichem Material. It trades about -0.33 of its potential returns per unit of risk. Shanghai Phichem Material is currently generating about -0.38 per unit of risk. If you would invest 1,201 in Linewell Software Co on October 12, 2024 and sell it today you would lose (173.00) from holding Linewell Software Co or give up 14.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Shanghai Phichem Material
Performance |
| Timeline |
| Linewell Software |
| Shanghai Phichem Material |
Linewell Software and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Shanghai Phichem
The main advantage of trading using opposite Linewell Software and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.| Linewell Software vs. Qiaoyin Environmental Tech | Linewell Software vs. Jiangsu Yueda Investment | Linewell Software vs. Shenzhen MYS Environmental | Linewell Software vs. Gansu Jiu Steel |
| Shanghai Phichem vs. Harbin Air Conditioning | Shanghai Phichem vs. Miracll Chemicals Co | Shanghai Phichem vs. Linewell Software Co | Shanghai Phichem vs. Wuxi Chemical Equipment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |