Correlation Between Ligao Foods and Bomin Electronics
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By analyzing existing cross correlation between Ligao Foods CoLtd and Bomin Electronics Co, you can compare the effects of market volatilities on Ligao Foods and Bomin Electronics 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 Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Bomin Electronics.
Diversification Opportunities for Ligao Foods and Bomin Electronics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Bomin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics 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 Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Ligao Foods i.e., Ligao Foods and Bomin Electronics go up and down completely randomly.
Pair Corralation between Ligao Foods and Bomin Electronics
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Bomin Electronics. In addition to that, Ligao Foods is 1.01 times more volatile than Bomin Electronics Co. It trades about -0.05 of its total potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.03 per unit of volatility. If you would invest 1,516 in Bomin Electronics Co on November 27, 2024 and sell it today you would lose (654.00) from holding Bomin Electronics Co or give up 43.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Bomin Electronics Co
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Bomin Electronics |
Ligao Foods and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Bomin Electronics
The main advantage of trading using opposite Ligao Foods and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Ligao Foods vs. Tjk Machinery Tianjin | Ligao Foods vs. Lander Sports Development | Ligao Foods vs. Zhejiang Kingland Pipeline | Ligao Foods vs. Gifore Agricultural Machinery |
| Bomin Electronics vs. Huawen Media Investment | Bomin Electronics vs. Guizhou BroadcastingTV Info | Bomin Electronics vs. Anshan Senyuan Road | Bomin Electronics vs. Beijing Mainstreets 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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