Correlation Between Ligao Foods and Harvest Fund
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By analyzing existing cross correlation between Ligao Foods CoLtd and Harvest Fund Management, you can compare the effects of market volatilities on Ligao Foods and Harvest Fund 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 Harvest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Harvest Fund.
Diversification Opportunities for Ligao Foods and Harvest Fund
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ligao and Harvest is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Harvest Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Fund Management 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 Harvest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Fund Management has no effect on the direction of Ligao Foods i.e., Ligao Foods and Harvest Fund go up and down completely randomly.
Pair Corralation between Ligao Foods and Harvest Fund
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Harvest Fund. In addition to that, Ligao Foods is 6.52 times more volatile than Harvest Fund Management. It trades about -0.14 of its total potential returns per unit of risk. Harvest Fund Management is currently generating about 0.04 per unit of volatility. If you would invest 260.00 in Harvest Fund Management on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Harvest Fund Management or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Harvest Fund Management
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Harvest Fund Management |
Ligao Foods and Harvest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Harvest Fund
The main advantage of trading using opposite Ligao Foods and Harvest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Harvest Fund 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 Harvest Fund will offset losses from the drop in Harvest Fund's long position.| Ligao Foods vs. China Petroleum Chemical | Ligao Foods vs. PetroChina Co Ltd | Ligao Foods vs. China State Construction | Ligao Foods vs. China Railway Group |
| Harvest Fund vs. Sanbo Hospital Management | Harvest Fund vs. Guangdong Advertising Co | Harvest Fund vs. Changjiang Publishing Media | Harvest Fund vs. Dezhan HealthCare 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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