Correlation Between Ligao Foods and Xinjiang Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ligao Foods CoLtd and Xinjiang Communications Construction, you can compare the effects of market volatilities on Ligao Foods and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Xinjiang Communications.
Diversification Opportunities for Ligao Foods and Xinjiang Communications
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ligao and Xinjiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Ligao Foods i.e., Ligao Foods and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Ligao Foods and Xinjiang Communications
Assuming the 90 days trading horizon Ligao Foods is expected to generate 1.28 times less return on investment than Xinjiang Communications. In addition to that, Ligao Foods is 1.26 times more volatile than Xinjiang Communications Construction. It trades about 0.11 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.18 per unit of volatility. If you would invest 1,159 in Xinjiang Communications Construction on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Xinjiang Communications Construction or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Xinjiang Communications |
Ligao Foods and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Xinjiang Communications
The main advantage of trading using opposite Ligao Foods and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Ligao Foods vs. Poly Real Estate | Ligao Foods vs. China Vanke Co | Ligao Foods vs. China Merchants Shekou | Ligao Foods vs. Huafa Industrial Co |
| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |