Correlation Between Linewell Software and Allgens Medical
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By analyzing existing cross correlation between Linewell Software Co and Allgens Medical Technology, you can compare the effects of market volatilities on Linewell Software and Allgens Medical 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 Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Allgens Medical.
Diversification Opportunities for Linewell Software and Allgens Medical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Linewell and Allgens is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Linewell Software i.e., Linewell Software and Allgens Medical go up and down completely randomly.
Pair Corralation between Linewell Software and Allgens Medical
Assuming the 90 days trading horizon Linewell Software Co is expected to under-perform the Allgens Medical. But the stock apears to be less risky and, when comparing its historical volatility, Linewell Software Co is 1.29 times less risky than Allgens Medical. The stock trades about -0.33 of its potential returns per unit of risk. The Allgens Medical Technology is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,889 in Allgens Medical Technology on October 12, 2024 and sell it today you would lose (209.00) from holding Allgens Medical Technology or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Linewell Software Co vs. Allgens Medical Technology
Performance |
| Timeline |
| Linewell Software |
| Allgens Medical Tech |
Linewell Software and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Allgens Medical
The main advantage of trading using opposite Linewell Software and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical'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 |
| Allgens Medical vs. Bingo Software Co | Allgens Medical vs. Jiangxi Hengda Hi Tech | Allgens Medical vs. Linewell Software Co | Allgens Medical vs. Caihong Display Devices |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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