Correlation Between Ligao Foods and Dymatic Chemicals
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By analyzing existing cross correlation between Ligao Foods CoLtd and Dymatic Chemicals, you can compare the effects of market volatilities on Ligao Foods and Dymatic Chemicals 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 Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Dymatic Chemicals.
Diversification Opportunities for Ligao Foods and Dymatic Chemicals
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Dymatic is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals 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 Dymatic Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dymatic Chemicals has no effect on the direction of Ligao Foods i.e., Ligao Foods and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Ligao Foods and Dymatic Chemicals
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.23 times more return on investment than Dymatic Chemicals. However, Ligao Foods is 1.23 times more volatile than Dymatic Chemicals. It trades about 0.05 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.04 per unit of risk. 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 |
Ligao Foods CoLtd vs. Dymatic Chemicals
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Dymatic Chemicals |
Ligao Foods and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Dymatic Chemicals
The main advantage of trading using opposite Ligao Foods and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Dymatic Chemicals 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 Dymatic Chemicals will offset losses from the drop in Dymatic Chemicals' long position.| Ligao Foods vs. Tianshui Huatian Technology | Ligao Foods vs. Guangdong Transtek Medical | Ligao Foods vs. Holitech Technology Co | Ligao Foods vs. Linewell Software Co |
| Dymatic Chemicals vs. Lecron Energy Saving | Dymatic Chemicals vs. Unisplendour Corp | Dymatic Chemicals vs. Ping An Insurance | Dymatic Chemicals vs. Xiamen Bank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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