Correlation Between Beijing Kaiwen and Ligao Foods
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By analyzing existing cross correlation between Beijing Kaiwen Education and Ligao Foods CoLtd, you can compare the effects of market volatilities on Beijing Kaiwen 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 Beijing Kaiwen with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Ligao Foods.
Diversification Opportunities for Beijing Kaiwen and Ligao Foods
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Ligao is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education 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 Beijing Kaiwen 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 Beijing Kaiwen Education 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 Beijing Kaiwen i.e., Beijing Kaiwen and Ligao Foods go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Ligao Foods
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 0.86 times more return on investment than Ligao Foods. However, Beijing Kaiwen Education is 1.16 times less risky than Ligao Foods. It trades about 0.0 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.12 per unit of risk. If you would invest 449.00 in Beijing Kaiwen Education on October 26, 2024 and sell it today you would lose (2.00) from holding Beijing Kaiwen Education or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Ligao Foods CoLtd |
Beijing Kaiwen and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Ligao Foods
The main advantage of trading using opposite Beijing Kaiwen and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen 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.| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
| Ligao Foods vs. Kweichow Moutai Co | Ligao Foods vs. Contemporary Amperex Technology | Ligao Foods vs. G bits Network Technology | Ligao Foods vs. Beijing Roborock Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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