Correlation Between Ligao Foods and Zhejiang Qianjiang
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By analyzing existing cross correlation between Ligao Foods CoLtd and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Ligao Foods and Zhejiang Qianjiang 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 Ligao Foods with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Zhejiang Qianjiang.
Diversification Opportunities for Ligao Foods and Zhejiang Qianjiang
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ligao and Zhejiang is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Ligao 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 Ligao Foods CoLtd are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Ligao Foods i.e., Ligao Foods and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Ligao Foods and Zhejiang Qianjiang
Assuming the 90 days trading horizon Ligao Foods is expected to generate 4.1 times less return on investment than Zhejiang Qianjiang. In addition to that, Ligao Foods is 1.22 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.03 of its total potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.17 per unit of volatility. If you would invest 1,649 in Zhejiang Qianjiang Motorcycle on October 30, 2024 and sell it today you would earn a total of 343.00 from holding Zhejiang Qianjiang Motorcycle or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Zhejiang Qianjiang |
Ligao Foods and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Zhejiang Qianjiang
The main advantage of trading using opposite Ligao Foods and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Ligao Foods vs. Kuang Chi Technologies | Ligao Foods vs. Dhc Software Co | Ligao Foods vs. Runjian Communication Co | Ligao Foods vs. Bank of Communications |
| Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. China Construction Bank | Zhejiang Qianjiang vs. Agricultural Bank of | Zhejiang Qianjiang vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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