Correlation Between Henan Shuanghui and Linewell Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and Linewell Software Co, you can compare the effects of market volatilities on Henan Shuanghui and Linewell Software 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 Henan Shuanghui with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Linewell Software.
Diversification Opportunities for Henan Shuanghui and Linewell Software
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Linewell is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Linewell Software go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Linewell Software
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.73 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.28 times less risky than Linewell Software. It trades about 0.13 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Linewell Software Co on September 12, 2024 and sell it today you would earn a total of 339.00 from holding Linewell Software Co or generate 39.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Linewell Software Co
Performance |
Timeline |
Henan Shuanghui Inve |
Linewell Software |
Henan Shuanghui and Linewell Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Linewell Software
The main advantage of trading using opposite Henan Shuanghui and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.Henan Shuanghui vs. China Petroleum Chemical | Henan Shuanghui vs. PetroChina Co Ltd | Henan Shuanghui vs. China State Construction | Henan Shuanghui vs. China Railway Group |
Linewell Software vs. Gansu Jiu Steel | Linewell Software vs. Shandong Mining Machinery | Linewell Software vs. Aba Chemicals Corp | Linewell Software vs. BlueFocus Communication 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |