Correlation Between Ligao Foods and Hainan Haiqi
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By analyzing existing cross correlation between Ligao Foods CoLtd and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Ligao Foods and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Hainan Haiqi.
Diversification Opportunities for Ligao Foods and Hainan Haiqi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ligao and Hainan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Ligao Foods i.e., Ligao Foods and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Ligao Foods and Hainan Haiqi
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.26 times more return on investment than Hainan Haiqi. However, Ligao Foods is 1.26 times more volatile than Hainan Haiqi Transportation. It trades about 0.04 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.01 per unit of risk. If you would invest 2,961 in Ligao Foods CoLtd on October 14, 2024 and sell it today you would earn a total of 441.00 from holding Ligao Foods CoLtd or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Hainan Haiqi Transpo |
Ligao Foods and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Hainan Haiqi
The main advantage of trading using opposite Ligao Foods and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi'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 |
| Hainan Haiqi vs. Dymatic Chemicals | Hainan Haiqi vs. Ligao Foods CoLtd | Hainan Haiqi vs. Xiangtan Electrochemical Scientific | Hainan Haiqi vs. Guangdong Wens Foodstuff |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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