Correlation Between Ligao Foods and Goodwill E
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By analyzing existing cross correlation between Ligao Foods CoLtd and Goodwill E Health, you can compare the effects of market volatilities on Ligao Foods and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Goodwill E.
Diversification Opportunities for Ligao Foods and Goodwill E
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ligao and Goodwill is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Ligao Foods i.e., Ligao Foods and Goodwill E go up and down completely randomly.
Pair Corralation between Ligao Foods and Goodwill E
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to generate 0.78 times more return on investment than Goodwill E. However, Ligao Foods CoLtd is 1.28 times less risky than Goodwill E. It trades about 0.07 of its potential returns per unit of risk. Goodwill E Health is currently generating about -0.03 per unit of risk. If you would invest 3,903 in Ligao Foods CoLtd on November 1, 2024 and sell it today you would earn a total of 121.00 from holding Ligao Foods CoLtd or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Goodwill E Health
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Goodwill E Health |
Ligao Foods and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Goodwill E
The main advantage of trading using opposite Ligao Foods and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.| Ligao Foods vs. Chengdu B ray Media | Ligao Foods vs. Guangdong Jinma Entertainment | Ligao Foods vs. Mango Excellent Media | Ligao Foods vs. Shuhua Sports Co |
| Goodwill E vs. Ligao Foods CoLtd | Goodwill E vs. Jinhui Liquor Co | Goodwill E vs. Jiugui Liquor Co | Goodwill E vs. Anji Foodstuff Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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