Correlation Between Ligao Foods and Suzhou Mingzhi
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By analyzing existing cross correlation between Ligao Foods CoLtd and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Ligao Foods and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligao Foods and Suzhou Mingzhi.
Diversification Opportunities for Ligao Foods and Suzhou Mingzhi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ligao and Suzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ligao Foods CoLtd and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Ligao Foods i.e., Ligao Foods and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Ligao Foods and Suzhou Mingzhi
Assuming the 90 days trading horizon Ligao Foods CoLtd is expected to under-perform the Suzhou Mingzhi. In addition to that, Ligao Foods is 1.32 times more volatile than Suzhou Mingzhi Technology. It trades about -0.12 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.12 per unit of volatility. If you would invest 1,732 in Suzhou Mingzhi Technology on October 26, 2024 and sell it today you would earn a total of 97.00 from holding Suzhou Mingzhi Technology or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ligao Foods CoLtd vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Ligao Foods CoLtd |
| Suzhou Mingzhi Technology |
Ligao Foods and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligao Foods and Suzhou Mingzhi
The main advantage of trading using opposite Ligao Foods and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligao Foods position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Ligao Foods vs. Kweichow Moutai Co | Ligao Foods vs. Contemporary Amperex Technology | Ligao Foods vs. G bits Network Technology | Ligao Foods vs. Beijing Roborock Technology |
| Suzhou Mingzhi vs. Fujian Anjoy Foods | Suzhou Mingzhi vs. Ligao Foods CoLtd | Suzhou Mingzhi vs. Qingdao Foods Co | Suzhou Mingzhi vs. Muyuan 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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