Correlation Between Ligao Foods and Hunan Fangsheng
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By analyzing existing cross correlation between Ligao Foods CoLtd and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Ligao Foods and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Hunan Fangsheng.
Diversification Opportunities for Ligao Foods and Hunan Fangsheng
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ligao and Hunan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Ligao Foods i.e., Ligao Foods and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Ligao Foods and Hunan Fangsheng
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 1.76 times more return on investment than Hunan Fangsheng. However, Ligao Foods is 1.76 times more volatile than Hunan Fangsheng Pharm. It trades about 0.1 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.16 per unit of risk. If you would invest 4,000 in Ligao Foods CoLtd on September 13, 2024 and sell it today you would earn a total of 270.00 from holding Ligao Foods CoLtd or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Hunan Fangsheng Pharm |
Ligao Foods and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Hunan Fangsheng
The main advantage of trading using opposite Ligao Foods and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Ligao Foods vs. Nanjing Putian Telecommunications | Ligao Foods vs. Tianjin Realty Development | Ligao Foods vs. Kangyue Technology Co | Ligao Foods vs. Shenzhen Hifuture Electric |
| Hunan Fangsheng vs. BeiGene | Hunan Fangsheng vs. Kweichow Moutai Co | Hunan Fangsheng vs. Beijing Roborock Technology | Hunan Fangsheng vs. G bits Network Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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