Correlation Between Ligao Foods and Jiangsu Yueda
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By analyzing existing cross correlation between Ligao Foods CoLtd and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Ligao Foods and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Jiangsu Yueda.
Diversification Opportunities for Ligao Foods and Jiangsu Yueda
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ligao and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Ligao Foods i.e., Ligao Foods and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Ligao Foods and Jiangsu Yueda
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Jiangsu Yueda. In addition to that, Ligao Foods is 1.21 times more volatile than Jiangsu Yueda Investment. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.01 per unit of volatility. If you would invest 459.00 in Jiangsu Yueda Investment on October 14, 2024 and sell it today you would lose (38.00) from holding Jiangsu Yueda Investment or give up 8.28% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Jiangsu Yueda Investment |
Ligao Foods and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Jiangsu Yueda
The main advantage of trading using opposite Ligao Foods and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Ligao Foods vs. Longxing Chemical Stock | Ligao Foods vs. Huaxia Fund Management | Ligao Foods vs. Guangzhou Jointas Chemical | Ligao Foods vs. JCHX Mining Management |
| Jiangsu Yueda vs. Beijing Baolande Software | Jiangsu Yueda vs. Ligao Foods CoLtd | Jiangsu Yueda vs. Bingo Software Co | Jiangsu Yueda vs. Bohai Leasing Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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