Correlation Between Xinjiang Communications and Linewell Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Linewell Software Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Linewell Software.
Diversification Opportunities for Xinjiang Communications and Linewell Software
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Linewell is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Linewell Software go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Linewell Software
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.71 times more return on investment than Linewell Software. However, Xinjiang Communications Construction is 1.4 times less risky than Linewell Software. It trades about -0.06 of its potential returns per unit of risk. Linewell Software Co is currently generating about -0.05 per unit of risk. If you would invest 1,233 in Xinjiang Communications Construction on September 24, 2024 and sell it today you would lose (32.00) from holding Xinjiang Communications Construction or give up 2.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Communications Constr vs. Linewell Software Co
Performance |
Timeline |
Xinjiang Communications |
Linewell Software |
Xinjiang Communications and Linewell Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Communications and Linewell Software
The main advantage of trading using opposite Xinjiang Communications and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. China Construction Bank |
Linewell Software vs. Industrial and Commercial | Linewell Software vs. Agricultural Bank of | Linewell Software vs. China Construction Bank | Linewell Software vs. Bank of China |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |