Correlation Between Linewell Software and Hubei Forbon
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By analyzing existing cross correlation between Linewell Software Co and Hubei Forbon Technology, you can compare the effects of market volatilities on Linewell Software and Hubei Forbon 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 Linewell Software with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Hubei Forbon.
Diversification Opportunities for Linewell Software and Hubei Forbon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Linewell and Hubei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology and Linewell Software 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 Linewell Software Co are associated (or correlated) with Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Linewell Software i.e., Linewell Software and Hubei Forbon go up and down completely randomly.
Pair Corralation between Linewell Software and Hubei Forbon
Assuming the 90 days trading horizon Linewell Software is expected to generate 1.07 times less return on investment than Hubei Forbon. In addition to that, Linewell Software is 1.0 times more volatile than Hubei Forbon Technology. It trades about 0.1 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.11 per unit of volatility. If you would invest 663.00 in Hubei Forbon Technology on September 25, 2024 and sell it today you would earn a total of 158.00 from holding Hubei Forbon Technology or generate 23.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Linewell Software Co vs. Hubei Forbon Technology
Performance |
Timeline |
Linewell Software |
Hubei Forbon Technology |
Linewell Software and Hubei Forbon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Linewell Software and Hubei Forbon
The main advantage of trading using opposite Linewell Software and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.Linewell Software vs. Nantong Jiangshan Agrochemical | Linewell Software vs. Hoshine Silicon Ind | Linewell Software vs. Marssenger Kitchenware Co | Linewell Software vs. Guangzhou Jointas Chemical |
Hubei Forbon vs. Keeson Technology Corp | Hubei Forbon vs. Hainan Mining Co | Hubei Forbon vs. Sino Platinum Metals Co | Hubei Forbon vs. Linewell Software 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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