Correlation Between Ligao Foods and Jiamei Food
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By analyzing existing cross correlation between Ligao Foods CoLtd and Jiamei Food Packaging, you can compare the effects of market volatilities on Ligao Foods and Jiamei Food 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 Jiamei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Jiamei Food.
Diversification Opportunities for Ligao Foods and Jiamei Food
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Jiamei is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Jiamei Food Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiamei Food Packaging 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 Jiamei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiamei Food Packaging has no effect on the direction of Ligao Foods i.e., Ligao Foods and Jiamei Food go up and down completely randomly.
Pair Corralation between Ligao Foods and Jiamei Food
Assuming the 90 days trading horizon Ligao Foods is expected to generate 2.08 times less return on investment than Jiamei Food. In addition to that, Ligao Foods is 1.07 times more volatile than Jiamei Food Packaging. It trades about 0.05 of its total potential returns per unit of risk. Jiamei Food Packaging is currently generating about 0.11 per unit of volatility. If you would invest 308.00 in Jiamei Food Packaging on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Jiamei Food Packaging or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Jiamei Food Packaging
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Jiamei Food Packaging |
Ligao Foods and Jiamei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Jiamei Food
The main advantage of trading using opposite Ligao Foods and Jiamei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Jiamei Food 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 Jiamei Food will offset losses from the drop in Jiamei Food's long position.| Ligao Foods vs. Guangzhou Restaurants Group | Ligao Foods vs. Healthcare Co | Ligao Foods vs. Goodwill E Health | Ligao Foods vs. Sinofibers Technology Co |
| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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