Correlation Between CIMC Vehicles and Ligao Foods
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By analyzing existing cross correlation between CIMC Vehicles Co and Ligao Foods CoLtd, you can compare the effects of market volatilities on CIMC Vehicles and Ligao Foods 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 CIMC Vehicles with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Ligao Foods.
Diversification Opportunities for CIMC Vehicles and Ligao Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIMC and Ligao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd and CIMC Vehicles 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 CIMC Vehicles Co are associated (or correlated) with Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Ligao Foods go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Ligao Foods
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.71 times more return on investment than Ligao Foods. However, CIMC Vehicles Co is 1.41 times less risky than Ligao Foods. It trades about -0.05 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.08 per unit of risk. If you would invest 1,006 in CIMC Vehicles Co on August 27, 2024 and sell it today you would lose (26.00) from holding CIMC Vehicles Co or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Ligao Foods CoLtd
Performance |
| Timeline |
| CIMC Vehicles |
| Ligao Foods CoLtd |
CIMC Vehicles and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Ligao Foods
The main advantage of trading using opposite CIMC Vehicles and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' long position.| CIMC Vehicles vs. Focus Media Information | CIMC Vehicles vs. Chengdu B ray Media | CIMC Vehicles vs. Hengdian Entertainment Co | CIMC Vehicles vs. Oriental Times Media |
| Ligao Foods vs. Northking Information Technology | Ligao Foods vs. Jiujiang Shanshui Technology | Ligao Foods vs. Kuangda Technology Group | Ligao Foods vs. Omnijoi Media Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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