Correlation Between Ligao Foods and Jiangsu Phoenix
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ligao Foods CoLtd and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Ligao Foods and Jiangsu Phoenix 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 Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Jiangsu Phoenix.
Diversification Opportunities for Ligao Foods and Jiangsu Phoenix
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ligao and Jiangsu is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Ligao Foods i.e., Ligao Foods and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Ligao Foods and Jiangsu Phoenix
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Jiangsu Phoenix. In addition to that, Ligao Foods is 1.15 times more volatile than Jiangsu Phoenix Publishing. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.04 per unit of volatility. If you would invest 741.00 in Jiangsu Phoenix Publishing on September 3, 2024 and sell it today you would earn a total of 306.00 from holding Jiangsu Phoenix Publishing or generate 41.3% 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. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Jiangsu Phoenix Publ |
Ligao Foods and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Jiangsu Phoenix
The main advantage of trading using opposite Ligao Foods and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Jiangsu Phoenix 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 Phoenix will offset losses from the drop in Jiangsu Phoenix's long position.| Ligao Foods vs. Beijing Wantai Biological | Ligao Foods vs. Aluminum Corp of | Ligao Foods vs. COL Digital Publishing | Ligao Foods vs. Shaanxi Meineng Clean |
| Jiangsu Phoenix vs. China Railway Materials | Jiangsu Phoenix vs. Eastroc Beverage Group | Jiangsu Phoenix vs. Jiangnan Mould Plastic | Jiangsu Phoenix vs. Ligao Foods CoLtd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |