Correlation Between Ligao Foods and Beijing Roborock
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By analyzing existing cross correlation between Ligao Foods CoLtd and Beijing Roborock Technology, you can compare the effects of market volatilities on Ligao Foods and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Beijing Roborock.
Diversification Opportunities for Ligao Foods and Beijing Roborock
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ligao and Beijing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Ligao Foods i.e., Ligao Foods and Beijing Roborock go up and down completely randomly.
Pair Corralation between Ligao Foods and Beijing Roborock
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 0.78 times more return on investment than Beijing Roborock. However, Ligao Foods CoLtd is 1.29 times less risky than Beijing Roborock. It trades about 0.1 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.07 per unit of risk. If you would invest 2,820 in Ligao Foods CoLtd on September 28, 2024 and sell it today you would earn a total of 1,391 from holding Ligao Foods CoLtd or generate 49.33% 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. Beijing Roborock Technology
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Beijing Roborock Tec |
Ligao Foods and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Beijing Roborock
The main advantage of trading using opposite Ligao Foods and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Ligao Foods vs. Ming Yang Smart | Ligao Foods vs. 159681 | Ligao Foods vs. 159005 | Ligao Foods vs. Loctek Ergonomic Technology |
| Beijing Roborock vs. Qijing Machinery | Beijing Roborock vs. Ningbo Construction Co | Beijing Roborock vs. Allied Machinery Co | Beijing Roborock vs. Shanghai Construction Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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