Correlation Between HaiXin Foods and Ligao Foods
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By analyzing existing cross correlation between HaiXin Foods Co and Ligao Foods CoLtd, you can compare the effects of market volatilities on HaiXin Foods 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 HaiXin Foods with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Ligao Foods.
Diversification Opportunities for HaiXin Foods and Ligao Foods
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Ligao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co 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 HaiXin Foods 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 HaiXin Foods Co 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 HaiXin Foods i.e., HaiXin Foods and Ligao Foods go up and down completely randomly.
Pair Corralation between HaiXin Foods and Ligao Foods
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.29 times more return on investment than Ligao Foods. However, HaiXin Foods is 1.29 times more volatile than Ligao Foods CoLtd. It trades about 0.14 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.09 per unit of risk. If you would invest 363.00 in HaiXin Foods Co on August 25, 2024 and sell it today you would earn a total of 40.00 from holding HaiXin Foods Co or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Ligao Foods CoLtd
Performance |
| Timeline |
| HaiXin Foods |
| Ligao Foods CoLtd |
HaiXin Foods and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Ligao Foods
The main advantage of trading using opposite HaiXin Foods and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods 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.| HaiXin Foods vs. Aluminum Corp of | HaiXin Foods vs. COL Digital Publishing | HaiXin Foods vs. Shaanxi Meineng Clean | HaiXin Foods vs. Gansu Huangtai Wine marketing |
| Ligao Foods vs. Sichuan Jinshi Technology | Ligao Foods vs. Fiberhome Telecommunication Technologies | Ligao Foods vs. Western Superconducting Tech | Ligao Foods vs. Jiangxi Hengda Hi Tech |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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