Correlation Between Shenzhen Centralcon and Ligao Foods
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Ligao Foods CoLtd, you can compare the effects of market volatilities on Shenzhen Centralcon and Ligao Foods 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 Shenzhen Centralcon with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Ligao Foods.
Diversification Opportunities for Shenzhen Centralcon and Ligao Foods
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ligao is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Ligao Foods go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Ligao Foods
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.16 times more return on investment than Ligao Foods. However, Shenzhen Centralcon is 1.16 times more volatile than Ligao Foods CoLtd. It trades about 0.01 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.01 per unit of risk. If you would invest 612.00 in Shenzhen Centralcon Investment on September 4, 2024 and sell it today you would lose (70.00) from holding Shenzhen Centralcon Investment or give up 11.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Shenzhen Centralcon |
| Ligao Foods CoLtd |
Shenzhen Centralcon and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Ligao Foods
The main advantage of trading using opposite Shenzhen Centralcon and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' long position.| Shenzhen Centralcon vs. Lander Sports Development | Shenzhen Centralcon vs. Longxing Chemical Stock | Shenzhen Centralcon vs. Miracll Chemicals Co | Shenzhen Centralcon vs. Sportsoul Co Ltd |
| Ligao Foods vs. Poly Real Estate | Ligao Foods vs. China Vanke Co | Ligao Foods vs. China Merchants Shekou | Ligao Foods vs. Huafa Industrial 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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