Correlation Between Linewell Software and Jiangyin Jianghua
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By analyzing existing cross correlation between Linewell Software Co and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Linewell Software and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Jiangyin Jianghua.
Diversification Opportunities for Linewell Software and Jiangyin Jianghua
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linewell and Jiangyin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Linewell Software i.e., Linewell Software and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Linewell Software and Jiangyin Jianghua
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 0.81 times more return on investment than Jiangyin Jianghua. However, Linewell Software Co is 1.23 times less risky than Jiangyin Jianghua. It trades about 0.08 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.01 per unit of risk. If you would invest 1,100 in Linewell Software Co on November 7, 2024 and sell it today you would earn a total of 147.00 from holding Linewell Software Co or generate 13.36% 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. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Linewell Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Jiangyin Jianghua |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Linewell Software and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Jiangyin Jianghua
The main advantage of trading using opposite Linewell Software and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.The idea behind Linewell Software Co and Jiangyin Jianghua Microelectronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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