Correlation Between Ligao Foods and Guangzhou Haige
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By analyzing existing cross correlation between Ligao Foods CoLtd and Guangzhou Haige Communications, you can compare the effects of market volatilities on Ligao Foods and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Guangzhou Haige.
Diversification Opportunities for Ligao Foods and Guangzhou Haige
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ligao and Guangzhou is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Ligao Foods i.e., Ligao Foods and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Ligao Foods and Guangzhou Haige
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.25 times more return on investment than Guangzhou Haige. However, Ligao Foods is 1.25 times more volatile than Guangzhou Haige Communications. It trades about 0.35 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.11 per unit of risk. If you would invest 3,508 in Ligao Foods CoLtd on November 6, 2024 and sell it today you would earn a total of 516.00 from holding Ligao Foods CoLtd or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Guangzhou Haige Comm |
Ligao Foods and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Guangzhou Haige
The main advantage of trading using opposite Ligao Foods and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Ligao Foods vs. Invengo Information Technology | Ligao Foods vs. Hubeiyichang Transportation Group | Ligao Foods vs. Chengdu Xinzhu RoadBridge | Ligao Foods vs. Road Environment Technology |
| Guangzhou Haige vs. Huaibei Mining Holdings | Guangzhou Haige vs. Beingmate Baby Child | Guangzhou Haige vs. Western Mining Co | Guangzhou Haige vs. Guangdong Silvere Sci |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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