Correlation Between Nantong Jiangshan and Linewell Software
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By analyzing existing cross correlation between Nantong Jiangshan Agrochemical and Linewell Software Co, you can compare the effects of market volatilities on Nantong Jiangshan 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 Nantong Jiangshan with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Jiangshan and Linewell Software.
Diversification Opportunities for Nantong Jiangshan and Linewell Software
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nantong and Linewell is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Jiangshan Agrochemical and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Nantong Jiangshan 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 Nantong Jiangshan Agrochemical 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 Nantong Jiangshan i.e., Nantong Jiangshan and Linewell Software go up and down completely randomly.
Pair Corralation between Nantong Jiangshan and Linewell Software
Assuming the 90 days trading horizon Nantong Jiangshan is expected to generate 1.67 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Nantong Jiangshan Agrochemical is 1.59 times less risky than Linewell Software. It trades about 0.09 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nantong Jiangshan Agrochemical vs. Linewell Software Co
Performance |
Timeline |
Nantong Jiangshan |
Linewell Software |
Nantong Jiangshan and Linewell Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nantong Jiangshan and Linewell Software
The main advantage of trading using opposite Nantong Jiangshan and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Jiangshan 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.Nantong Jiangshan vs. Zijin Mining Group | Nantong Jiangshan vs. Wanhua Chemical Group | Nantong Jiangshan vs. Baoshan Iron Steel | Nantong Jiangshan vs. Shandong Gold Mining |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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