Correlation Between Linewell Software and Caihong Display
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By analyzing existing cross correlation between Linewell Software Co and Caihong Display Devices, you can compare the effects of market volatilities on Linewell Software and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Caihong Display.
Diversification Opportunities for Linewell Software and Caihong Display
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Linewell and Caihong is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Linewell Software i.e., Linewell Software and Caihong Display go up and down completely randomly.
Pair Corralation between Linewell Software and Caihong Display
Assuming the 90 days trading horizon Linewell Software Co is expected to under-perform the Caihong Display. In addition to that, Linewell Software is 1.19 times more volatile than Caihong Display Devices. It trades about -0.02 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.05 per unit of volatility. If you would invest 463.00 in Caihong Display Devices on October 16, 2024 and sell it today you would earn a total of 322.00 from holding Caihong Display Devices or generate 69.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Caihong Display Devices
Performance |
| Timeline |
| Linewell Software |
| Caihong Display Devices |
Linewell Software and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Caihong Display
The main advantage of trading using opposite Linewell Software and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Linewell Software vs. China Life Insurance | Linewell Software vs. Cinda Securities Co | Linewell Software vs. Piotech Inc A | Linewell Software vs. Dongxing Sec Co |
| Caihong Display vs. Great Sun Foods Co | Caihong Display vs. Vanfund Urban Investment | Caihong Display vs. Zhongrun Resources Investment | Caihong Display vs. Kunwu Jiuding Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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