Correlation Between Ligao Foods and Ping An
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By analyzing existing cross correlation between Ligao Foods CoLtd and Ping An Insurance, you can compare the effects of market volatilities on Ligao Foods and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Ping An.
Diversification Opportunities for Ligao Foods and Ping An
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ligao and Ping is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Ligao Foods i.e., Ligao Foods and Ping An go up and down completely randomly.
Pair Corralation between Ligao Foods and Ping An
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.77 times more return on investment than Ping An. However, Ligao Foods is 1.77 times more volatile than Ping An Insurance. It trades about 0.05 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.08 per unit of risk. If you would invest 2,926 in Ligao Foods CoLtd on October 12, 2024 and sell it today you would earn a total of 662.00 from holding Ligao Foods CoLtd or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Ping An Insurance
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Ping An Insurance |
Ligao Foods and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Ping An
The main advantage of trading using opposite Ligao Foods and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Ligao Foods vs. Tianshui Huatian Technology | Ligao Foods vs. Guangdong Transtek Medical | Ligao Foods vs. Holitech Technology Co | Ligao Foods vs. Linewell Software Co |
| Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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