Correlation Between Ligao Foods and Wuhan Hvsen
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By analyzing existing cross correlation between Ligao Foods CoLtd and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Ligao Foods and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Wuhan Hvsen.
Diversification Opportunities for Ligao Foods and Wuhan Hvsen
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Wuhan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Ligao Foods i.e., Ligao Foods and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Ligao Foods and Wuhan Hvsen
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 0.97 times more return on investment than Wuhan Hvsen. However, Ligao Foods CoLtd is 1.03 times less risky than Wuhan Hvsen. It trades about 0.0 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 4,772 in Ligao Foods CoLtd on October 26, 2024 and sell it today you would lose (852.00) from holding Ligao Foods CoLtd or give up 17.85% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Wuhan Hvsen Biotechnology |
Ligao Foods and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Wuhan Hvsen
The main advantage of trading using opposite Ligao Foods and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Ligao Foods vs. Kweichow Moutai Co | Ligao Foods vs. Contemporary Amperex Technology | Ligao Foods vs. G bits Network Technology | Ligao Foods vs. Beijing Roborock Technology |
| Wuhan Hvsen vs. Guangdong Wens Foodstuff | Wuhan Hvsen vs. Ligao Foods CoLtd | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. HaiXin Foods 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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