Correlation Between Linewell Software and China Eastern
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By analyzing existing cross correlation between Linewell Software Co and China Eastern Airlines, you can compare the effects of market volatilities on Linewell Software and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and China Eastern.
Diversification Opportunities for Linewell Software and China Eastern
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linewell and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Linewell Software i.e., Linewell Software and China Eastern go up and down completely randomly.
Pair Corralation between Linewell Software and China Eastern
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 2.15 times more return on investment than China Eastern. However, Linewell Software is 2.15 times more volatile than China Eastern Airlines. It trades about 0.01 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.03 per unit of risk. If you would invest 1,377 in Linewell Software Co on September 14, 2024 and sell it today you would lose (157.00) from holding Linewell Software Co or give up 11.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. China Eastern Airlines
Performance |
| Timeline |
| Linewell Software |
| China Eastern Airlines |
Linewell Software and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and China Eastern
The main advantage of trading using opposite Linewell Software and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Linewell Software vs. Ming Yang Smart | Linewell Software vs. 159681 | Linewell Software vs. 159005 | Linewell Software vs. Loctek Ergonomic Technology |
| China Eastern vs. Olympic Circuit Technology | China Eastern vs. Iat Automobile Technology | China Eastern vs. Linewell Software Co | China Eastern vs. Sunny Loan Top |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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