Correlation Between Ligao Foods and Chengdu Spaceon
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By analyzing existing cross correlation between Ligao Foods CoLtd and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Ligao Foods and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Chengdu Spaceon.
Diversification Opportunities for Ligao Foods and Chengdu Spaceon
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ligao and Chengdu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Ligao Foods i.e., Ligao Foods and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Ligao Foods and Chengdu Spaceon
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Chengdu Spaceon. In addition to that, Ligao Foods is 1.15 times more volatile than Chengdu Spaceon Electronics. It trades about -0.05 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.0 per unit of volatility. If you would invest 1,735 in Chengdu Spaceon Electronics on October 13, 2024 and sell it today you would lose (228.00) from holding Chengdu Spaceon Electronics or give up 13.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Chengdu Spaceon Elec |
Ligao Foods and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Chengdu Spaceon
The main advantage of trading using opposite Ligao Foods and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon'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 |
| Chengdu Spaceon vs. Gansu Huangtai Wine marketing | Chengdu Spaceon vs. Spring Airlines Co | Chengdu Spaceon vs. Touchstone International Medical | Chengdu Spaceon 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 CEOs Directory module to screen CEOs from public companies around the world.
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