Correlation Between Guangzhou Jointas and Linewell Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Jointas Chemical and Linewell Software Co, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Linewell Software.
Diversification Opportunities for Guangzhou Jointas and Linewell Software
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Linewell is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Guangzhou Jointas 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 Guangzhou Jointas Chemical 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 Guangzhou Jointas i.e., Guangzhou Jointas and Linewell Software go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Linewell Software
Assuming the 90 days trading horizon Guangzhou Jointas is expected to generate 1.01 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Guangzhou Jointas Chemical is 1.22 times less risky than Linewell Software. It trades about 0.12 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Linewell Software Co on September 25, 2024 and sell it today you would earn a total of 193.00 from holding Linewell Software Co or generate 21.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Jointas Chemical vs. Linewell Software Co
Performance |
Timeline |
Guangzhou Jointas |
Linewell Software |
Guangzhou Jointas and Linewell Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Jointas and Linewell Software
The main advantage of trading using opposite Guangzhou Jointas and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.Guangzhou Jointas vs. DO Home Collection | Guangzhou Jointas vs. Westone Information Industry | Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. HengFeng Information Technology |
Linewell Software vs. Nantong Jiangshan Agrochemical | Linewell Software vs. Hoshine Silicon Ind | Linewell Software vs. Marssenger Kitchenware Co | Linewell Software vs. Guangzhou Jointas Chemical |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |