Correlation Between Ligao Foods and V V
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By analyzing existing cross correlation between Ligao Foods CoLtd and V V Food, you can compare the effects of market volatilities on Ligao Foods and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and V V.
Diversification Opportunities for Ligao Foods and V V
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ligao and 600300 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Ligao Foods i.e., Ligao Foods and V V go up and down completely randomly.
Pair Corralation between Ligao Foods and V V
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the V V. In addition to that, Ligao Foods is 1.79 times more volatile than V V Food. It trades about -0.06 of its total potential returns per unit of risk. V V Food is currently generating about -0.02 per unit of volatility. If you would invest 347.00 in V V Food on August 27, 2024 and sell it today you would lose (62.00) from holding V V Food or give up 17.87% 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. V V Food
Performance |
| Timeline |
| Ligao Foods CoLtd |
| V V Food |
Ligao Foods and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and V V
The main advantage of trading using opposite Ligao Foods and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Ligao Foods vs. Northking Information Technology | Ligao Foods vs. Jiujiang Shanshui Technology | Ligao Foods vs. Kuangda Technology Group | Ligao Foods vs. Omnijoi Media Corp |
| V V vs. China Petroleum Chemical | V V vs. PetroChina Co Ltd | V V vs. China State Construction | V V vs. China Railway Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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