Correlation Between Dymatic Chemicals and Ligao Foods
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By analyzing existing cross correlation between Dymatic Chemicals and Ligao Foods CoLtd, you can compare the effects of market volatilities on Dymatic Chemicals 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 Dymatic Chemicals with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Ligao Foods.
Diversification Opportunities for Dymatic Chemicals and Ligao Foods
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Ligao is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals 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 Dymatic Chemicals 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 Dymatic Chemicals 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 Dymatic Chemicals i.e., Dymatic Chemicals and Ligao Foods go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Ligao Foods
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.7 times less return on investment than Ligao Foods. But when comparing it to its historical volatility, Dymatic Chemicals is 1.23 times less risky than Ligao Foods. It trades about 0.04 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,926 in Ligao Foods CoLtd on October 12, 2024 and sell it today you would earn a total of 662.00 from holding Ligao Foods CoLtd or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Dymatic Chemicals |
| Ligao Foods CoLtd |
Dymatic Chemicals and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Ligao Foods
The main advantage of trading using opposite Dymatic Chemicals and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals 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.| Dymatic Chemicals vs. Lecron Energy Saving | Dymatic Chemicals vs. Unisplendour Corp | Dymatic Chemicals vs. Ping An Insurance | Dymatic Chemicals vs. Xiamen Bank Co |
| Ligao Foods vs. Tianshui Huatian Technology | Ligao Foods vs. Guangdong Transtek Medical | Ligao Foods vs. Holitech Technology Co | Ligao Foods 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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