Correlation Between Ligao Foods and Everjoy Health
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By analyzing existing cross correlation between Ligao Foods CoLtd and Everjoy Health Group, you can compare the effects of market volatilities on Ligao Foods and Everjoy Health 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 Everjoy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Everjoy Health.
Diversification Opportunities for Ligao Foods and Everjoy Health
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ligao and Everjoy is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Everjoy Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everjoy Health Group 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 Everjoy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everjoy Health Group has no effect on the direction of Ligao Foods i.e., Ligao Foods and Everjoy Health go up and down completely randomly.
Pair Corralation between Ligao Foods and Everjoy Health
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Everjoy Health. In addition to that, Ligao Foods is 1.07 times more volatile than Everjoy Health Group. It trades about -0.05 of its total potential returns per unit of risk. Everjoy Health Group is currently generating about -0.02 per unit of volatility. If you would invest 506.00 in Everjoy Health Group on October 13, 2024 and sell it today you would lose (170.00) from holding Everjoy Health Group or give up 33.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Everjoy Health Group
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Everjoy Health Group |
Ligao Foods and Everjoy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Everjoy Health
The main advantage of trading using opposite Ligao Foods and Everjoy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Everjoy Health 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 Everjoy Health will offset losses from the drop in Everjoy Health's long position.| Ligao Foods vs. Longxing Chemical Stock | Ligao Foods vs. Huaxia Fund Management | Ligao Foods vs. Guangzhou Jointas Chemical | Ligao Foods vs. JCHX Mining Management |
| Everjoy Health vs. Qingdao Foods Co | Everjoy Health vs. Jiahe Foods Industry | Everjoy Health vs. Beijing Sanyuan Foods | Everjoy Health vs. Ligao Foods CoLtd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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