Correlation Between Ligao Foods and Pengxin International
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By analyzing existing cross correlation between Ligao Foods CoLtd and Pengxin International Mining, you can compare the effects of market volatilities on Ligao Foods and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Pengxin International.
Diversification Opportunities for Ligao Foods and Pengxin International
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Pengxin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Ligao Foods i.e., Ligao Foods and Pengxin International go up and down completely randomly.
Pair Corralation between Ligao Foods and Pengxin International
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Ligao Foods CoLtd is 1.0 times less risky than Pengxin International. The stock trades about -0.04 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 332.00 in Pengxin International Mining on October 25, 2024 and sell it today you would lose (16.00) from holding Pengxin International Mining or give up 4.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Pengxin International Mining
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Pengxin International |
Ligao Foods and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Pengxin International
The main advantage of trading using opposite Ligao Foods and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Ligao Foods vs. Kweichow Moutai Co | Ligao Foods vs. Contemporary Amperex Technology | Ligao Foods vs. G bits Network Technology | Ligao Foods vs. Beijing Roborock Technology |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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