Correlation Between Linewell Software and IRay Technology
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By analyzing existing cross correlation between Linewell Software Co and iRay Technology Co, you can compare the effects of market volatilities on Linewell Software and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and IRay Technology.
Diversification Opportunities for Linewell Software and IRay Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linewell and IRay is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of Linewell Software i.e., Linewell Software and IRay Technology go up and down completely randomly.
Pair Corralation between Linewell Software and IRay Technology
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 1.28 times more return on investment than IRay Technology. However, Linewell Software is 1.28 times more volatile than iRay Technology Co. It trades about 0.13 of its potential returns per unit of risk. iRay Technology Co is currently generating about 0.0 per unit of risk. If you would invest 1,108 in Linewell Software Co on September 1, 2024 and sell it today you would earn a total of 113.00 from holding Linewell Software Co or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Linewell Software Co vs. iRay Technology Co
Performance |
| Timeline |
| Linewell Software |
| iRay Technology |
Linewell Software and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and IRay Technology
The main advantage of trading using opposite Linewell Software and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology's long position.| Linewell Software vs. Ming Yang Smart | Linewell Software vs. 159681 | Linewell Software vs. 159005 | Linewell Software vs. Loctek Ergonomic Technology |
| IRay Technology vs. Haima Automobile Group | IRay Technology vs. Keeson Technology Corp | IRay Technology vs. Zotye Automobile Co | IRay Technology vs. Guangzhou Automobile Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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