Correlation Between Linewell Software and Chongqing Gas
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By analyzing existing cross correlation between Linewell Software Co and Chongqing Gas Grp, you can compare the effects of market volatilities on Linewell Software and Chongqing Gas 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 Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Chongqing Gas.
Diversification Opportunities for Linewell Software and Chongqing Gas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Linewell and Chongqing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp 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 Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of Linewell Software i.e., Linewell Software and Chongqing Gas go up and down completely randomly.
Pair Corralation between Linewell Software and Chongqing Gas
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 2.15 times more return on investment than Chongqing Gas. However, Linewell Software is 2.15 times more volatile than Chongqing Gas Grp. It trades about 0.01 of its potential returns per unit of risk. Chongqing Gas Grp is currently generating about -0.02 per unit of risk. If you would invest 1,319 in Linewell Software Co on September 12, 2024 and sell it today you would lose (125.00) from holding Linewell Software Co or give up 9.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Chongqing Gas Grp
Performance |
| Timeline |
| Linewell Software |
| Chongqing Gas Grp |
Linewell Software and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Chongqing Gas
The main advantage of trading using opposite Linewell Software and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| Linewell Software vs. Gansu Jiu Steel | Linewell Software vs. Shandong Mining Machinery | Linewell Software vs. Aba Chemicals Corp | Linewell Software vs. BlueFocus Communication Group |
| Chongqing Gas vs. Lander Sports Development | Chongqing Gas vs. Linewell Software Co | Chongqing Gas vs. Anhui Gujing Distillery | Chongqing Gas vs. Shenzhen Topway Video |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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