Correlation Between Ligao Foods and Goertek
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By analyzing existing cross correlation between Ligao Foods CoLtd and Goertek, you can compare the effects of market volatilities on Ligao Foods and Goertek 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 Goertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Goertek.
Diversification Opportunities for Ligao Foods and Goertek
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ligao and Goertek is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Goertek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goertek 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 Goertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goertek has no effect on the direction of Ligao Foods i.e., Ligao Foods and Goertek go up and down completely randomly.
Pair Corralation between Ligao Foods and Goertek
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.31 times more return on investment than Goertek. However, Ligao Foods is 1.31 times more volatile than Goertek. It trades about 0.23 of its potential returns per unit of risk. Goertek is currently generating about 0.2 per unit of risk. If you would invest 2,482 in Ligao Foods CoLtd on September 12, 2024 and sell it today you would earn a total of 1,788 from holding Ligao Foods CoLtd or generate 72.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Goertek
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Goertek |
Ligao Foods and Goertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Goertek
The main advantage of trading using opposite Ligao Foods and Goertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Goertek 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 Goertek will offset losses from the drop in Goertek's long position.| Ligao Foods vs. Nanjing Putian Telecommunications | Ligao Foods vs. Tianjin Realty Development | Ligao Foods vs. Kangyue Technology Co | Ligao Foods vs. Shenzhen Hifuture Electric |
| Goertek vs. Harvest Fund Management | Goertek vs. Fuda Alloy Materials | Goertek vs. King Strong New Material | Goertek vs. Innovative Medical Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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