Correlation Between Linewell Software and Jiangsu GDK
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By analyzing existing cross correlation between Linewell Software Co and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Linewell Software and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Jiangsu GDK.
Diversification Opportunities for Linewell Software and Jiangsu GDK
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Linewell and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Linewell Software i.e., Linewell Software and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Linewell Software and Jiangsu GDK
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 0.87 times more return on investment than Jiangsu GDK. However, Linewell Software Co is 1.15 times less risky than Jiangsu GDK. It trades about 0.09 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.11 per unit of risk. If you would invest 1,097 in Linewell Software Co on October 29, 2024 and sell it today you would earn a total of 37.00 from holding Linewell Software Co or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Linewell Software |
| Jiangsu GDK Biotechnology |
Linewell Software and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Jiangsu GDK
The main advantage of trading using opposite Linewell Software and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Linewell Software vs. Bank of China | Linewell Software vs. Kweichow Moutai Co | Linewell Software vs. PetroChina Co Ltd | Linewell Software vs. Bank of Communications |
| Jiangsu GDK vs. Changjiang Jinggong Steel | Jiangsu GDK vs. Sinocat Environmental Technology | Jiangsu GDK vs. Offshore Oil Engineering | Jiangsu GDK vs. Guangzhou Zhujiang Brewery |
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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