Correlation Between Ligao Foods and Wintao Communications
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By analyzing existing cross correlation between Ligao Foods CoLtd and Wintao Communications Co, you can compare the effects of market volatilities on Ligao Foods and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Wintao Communications.
Diversification Opportunities for Ligao Foods and Wintao Communications
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Wintao is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Ligao Foods i.e., Ligao Foods and Wintao Communications go up and down completely randomly.
Pair Corralation between Ligao Foods and Wintao Communications
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 0.9 times more return on investment than Wintao Communications. However, Ligao Foods CoLtd is 1.11 times less risky than Wintao Communications. It trades about 0.35 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.21 per unit of risk. If you would invest 3,508 in Ligao Foods CoLtd on November 6, 2024 and sell it today you would earn a total of 516.00 from holding Ligao Foods CoLtd or generate 14.71% 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. Wintao Communications Co
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Wintao Communications |
Ligao Foods and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Wintao Communications
The main advantage of trading using opposite Ligao Foods and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Ligao Foods vs. Invengo Information Technology | Ligao Foods vs. Hubeiyichang Transportation Group | Ligao Foods vs. Chengdu Xinzhu RoadBridge | Ligao Foods vs. Road Environment 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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