Correlation Between Ligao Foods and Bank of Suzhou
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By analyzing existing cross correlation between Ligao Foods CoLtd and Bank of Suzhou, you can compare the effects of market volatilities on Ligao Foods and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Bank of Suzhou.
Diversification Opportunities for Ligao Foods and Bank of Suzhou
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ligao and Bank is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Ligao Foods i.e., Ligao Foods and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Ligao Foods and Bank of Suzhou
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 3.52 times more return on investment than Bank of Suzhou. However, Ligao Foods is 3.52 times more volatile than Bank of Suzhou. It trades about 0.1 of its potential returns per unit of risk. Bank of Suzhou is currently generating about 0.33 per unit of risk. If you would invest 4,000 in Ligao Foods CoLtd on September 13, 2024 and sell it today you would earn a total of 270.00 from holding Ligao Foods CoLtd or generate 6.75% 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. Bank of Suzhou
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Bank of Suzhou |
Ligao Foods and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Bank of Suzhou
The main advantage of trading using opposite Ligao Foods and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou'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 |
| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Gome Telecom Equipment | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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