Correlation Between Ligao Foods and Beijing Sanyuan
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By analyzing existing cross correlation between Ligao Foods CoLtd and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Ligao Foods and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Beijing Sanyuan.
Diversification Opportunities for Ligao Foods and Beijing Sanyuan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ligao and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Ligao Foods i.e., Ligao Foods and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Ligao Foods and Beijing Sanyuan
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Beijing Sanyuan. In addition to that, Ligao Foods is 1.78 times more volatile than Beijing Sanyuan Foods. It trades about -0.04 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of volatility. If you would invest 519.00 in Beijing Sanyuan Foods on November 5, 2024 and sell it today you would lose (110.00) from holding Beijing Sanyuan Foods or give up 21.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Beijing Sanyuan Foods |
Ligao Foods and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Beijing Sanyuan
The main advantage of trading using opposite Ligao Foods and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Ligao Foods vs. Youyou Foods Co | Ligao Foods vs. Olympic Circuit Technology | Ligao Foods vs. Smartgiant Technology Co | Ligao Foods vs. Holitech Technology Co |
| Beijing Sanyuan vs. China Longyuan Power | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. Guangxi Guiguan Electric | Beijing Sanyuan vs. Yantai North Andre |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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