Correlation Between Ligao Foods and Kunwu Jiuding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ligao Foods CoLtd and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Ligao Foods and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Kunwu Jiuding.
Diversification Opportunities for Ligao Foods and Kunwu Jiuding
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ligao and Kunwu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Ligao Foods i.e., Ligao Foods and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Ligao Foods and Kunwu Jiuding
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Ligao Foods CoLtd is 1.1 times less risky than Kunwu Jiuding. The stock trades about -0.2 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Kunwu Jiuding Investment on October 17, 2024 and sell it today you would lose (76.00) from holding Kunwu Jiuding Investment or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Kunwu Jiuding Investment |
Ligao Foods and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Kunwu Jiuding
The main advantage of trading using opposite Ligao Foods and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Ligao Foods vs. Malion New Materials | Ligao Foods vs. Cultural Investment Holdings | Ligao Foods vs. Jinsanjiang Silicon Material | Ligao Foods vs. Harbin Hatou Investment |
| Kunwu Jiuding vs. Great Sun Foods Co | Kunwu Jiuding vs. Ligao Foods CoLtd | Kunwu Jiuding vs. Anji Foodstuff Co | Kunwu Jiuding vs. Shenzhen Kexin Communication |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |