Correlation Between Linewell Software and Hua Xia
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By analyzing existing cross correlation between Linewell Software Co and Hua Xia Bank, you can compare the effects of market volatilities on Linewell Software and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Hua Xia.
Diversification Opportunities for Linewell Software and Hua Xia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Linewell and Hua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Linewell Software i.e., Linewell Software and Hua Xia go up and down completely randomly.
Pair Corralation between Linewell Software and Hua Xia
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 2.0 times more return on investment than Hua Xia. However, Linewell Software is 2.0 times more volatile than Hua Xia Bank. It trades about 0.04 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.05 per unit of risk. If you would invest 887.00 in Linewell Software Co on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Linewell Software Co or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Hua Xia Bank
Performance |
| Timeline |
| Linewell Software |
| Hua Xia Bank |
Linewell Software and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Hua Xia
The main advantage of trading using opposite Linewell Software and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Bohai Leasing Co | Hua Xia vs. Easyhome New Retail | Hua Xia vs. Ningbo Construction Co | Hua Xia vs. Sinomach General Machinery |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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