Correlation Between Ligao Foods and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ligao Foods CoLtd and Kweichow Moutai Co, you can compare the effects of market volatilities on Ligao Foods and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Kweichow Moutai.
Diversification Opportunities for Ligao Foods and Kweichow Moutai
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ligao and Kweichow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Ligao Foods i.e., Ligao Foods and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Ligao Foods and Kweichow Moutai
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 3.4 times more return on investment than Kweichow Moutai. However, Ligao Foods is 3.4 times more volatile than Kweichow Moutai Co. It trades about 0.1 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.07 per unit of risk. If you would invest 3,421 in Ligao Foods CoLtd on October 26, 2024 and sell it today you would earn a total of 499.00 from holding Ligao Foods CoLtd or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Kweichow Moutai Co
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Kweichow Moutai |
Ligao Foods and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Kweichow Moutai
The main advantage of trading using opposite Ligao Foods and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai'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 |
| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |