Correlation Between Ligao Foods and CIMC Vehicles
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ligao Foods CoLtd and CIMC Vehicles Co, you can compare the effects of market volatilities on Ligao Foods and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and CIMC Vehicles.
Diversification Opportunities for Ligao Foods and CIMC Vehicles
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ligao and CIMC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Ligao Foods i.e., Ligao Foods and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Ligao Foods and CIMC Vehicles
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the CIMC Vehicles. In addition to that, Ligao Foods is 1.41 times more volatile than CIMC Vehicles Co. It trades about -0.03 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.01 per unit of volatility. If you would invest 990.00 in CIMC Vehicles Co on August 31, 2024 and sell it today you would lose (10.00) from holding CIMC Vehicles Co or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. CIMC Vehicles Co
Performance |
| Timeline |
| Ligao Foods CoLtd |
| CIMC Vehicles |
Ligao Foods and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and CIMC Vehicles
The main advantage of trading using opposite Ligao Foods and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Ligao Foods vs. Lutian Machinery Co | Ligao Foods vs. PetroChina Co Ltd | Ligao Foods vs. Bank of China | Ligao Foods vs. Gansu Jiu Steel |
| CIMC Vehicles vs. Lander Sports Development | CIMC Vehicles vs. Caihong Display Devices | CIMC Vehicles vs. Everdisplay Optronics Shanghai | CIMC Vehicles vs. Olympic Circuit Technology |
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
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |