Correlation Between Linewell Software and Guangdong TianYiMa
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By analyzing existing cross correlation between Linewell Software Co and Guangdong TianYiMa Information, you can compare the effects of market volatilities on Linewell Software and Guangdong TianYiMa 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 Guangdong TianYiMa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Guangdong TianYiMa.
Diversification Opportunities for Linewell Software and Guangdong TianYiMa
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linewell and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Guangdong TianYiMa Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong TianYiMa 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 Guangdong TianYiMa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong TianYiMa has no effect on the direction of Linewell Software i.e., Linewell Software and Guangdong TianYiMa go up and down completely randomly.
Pair Corralation between Linewell Software and Guangdong TianYiMa
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 0.98 times more return on investment than Guangdong TianYiMa. However, Linewell Software Co is 1.02 times less risky than Guangdong TianYiMa. It trades about 0.22 of its potential returns per unit of risk. Guangdong TianYiMa Information is currently generating about -0.07 per unit of risk. If you would invest 1,097 in Linewell Software Co on October 30, 2024 and sell it today you would earn a total of 150.00 from holding Linewell Software Co or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Guangdong TianYiMa Information
Performance |
| Timeline |
| Linewell Software |
| Guangdong TianYiMa |
Linewell Software and Guangdong TianYiMa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Guangdong TianYiMa
The main advantage of trading using opposite Linewell Software and Guangdong TianYiMa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Guangdong TianYiMa 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 Guangdong TianYiMa will offset losses from the drop in Guangdong TianYiMa's long position.| Linewell Software vs. Fujian Oriental Silver | Linewell Software vs. Tibet Huayu Mining | Linewell Software vs. Emdoor Information Co | Linewell Software vs. Dawning Information Industry |
| Guangdong TianYiMa vs. Namchow Food Group | Guangdong TianYiMa vs. Youyou Foods Co | Guangdong TianYiMa vs. HaiXin Foods Co | Guangdong TianYiMa vs. CITIC Metal Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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