Correlation Between Jilin Jlu and Linewell Software
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By analyzing existing cross correlation between Jilin Jlu Communication and Linewell Software Co, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Linewell Software.
Diversification Opportunities for Jilin Jlu and Linewell Software
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Linewell is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software and Jilin Jlu 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 Jilin Jlu Communication 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 Jilin Jlu i.e., Jilin Jlu and Linewell Software go up and down completely randomly.
Pair Corralation between Jilin Jlu and Linewell Software
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 2.72 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Jilin Jlu Communication is 2.49 times less risky than Linewell Software. It trades about 0.05 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,469 in Linewell Software Co on December 10, 2024 and sell it today you would earn a total of 53.00 from holding Linewell Software Co or generate 3.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Jlu Communication vs. Linewell Software Co
Performance |
Timeline |
Jilin Jlu Communication |
Linewell Software |
Jilin Jlu and Linewell Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and Linewell Software
The main advantage of trading using opposite Jilin Jlu and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.Jilin Jlu vs. Hengkang Medical Group | Jilin Jlu vs. Dingli Communications Corp | Jilin Jlu vs. Kontour Medical Technology | Jilin Jlu vs. Allmed Medical Products |
Linewell Software vs. Zijin Mining Group | Linewell Software vs. Hangzhou Gisway Information | Linewell Software vs. Chengtun Mining Group | Linewell Software vs. Shengda Mining Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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