Correlation Between Ligao Foods and Jiangsu Jinling
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By analyzing existing cross correlation between Ligao Foods CoLtd and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Ligao Foods and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Jiangsu Jinling.
Diversification Opportunities for Ligao Foods and Jiangsu Jinling
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Jiangsu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Ligao Foods i.e., Ligao Foods and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Ligao Foods and Jiangsu Jinling
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.27 times more return on investment than Jiangsu Jinling. However, Ligao Foods is 1.27 times more volatile than Jiangsu Jinling Sports. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.09 per unit of risk. If you would invest 4,041 in Ligao Foods CoLtd on October 24, 2024 and sell it today you would lose (32.00) from holding Ligao Foods CoLtd or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Jiangsu Jinling Sports |
Ligao Foods and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Jiangsu Jinling
The main advantage of trading using opposite Ligao Foods and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Ligao Foods vs. HUAQIN TECHNOLOGY LTD | Ligao Foods vs. Eyebright Medical Technology | Ligao Foods vs. Tianshui Huatian Technology | Ligao Foods vs. Queclink Wireless Solutions |
| Jiangsu Jinling vs. Guangdong Wens Foodstuff | Jiangsu Jinling vs. Ligao Foods CoLtd | Jiangsu Jinling vs. Jiahe Foods Industry | Jiangsu Jinling vs. Chengdu Xinzhu RoadBridge |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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