Correlation Between Jinsanjiang Silicon and Ligao Foods
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Ligao Foods CoLtd, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Ligao Foods.
Diversification Opportunities for Jinsanjiang Silicon and Ligao Foods
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinsanjiang and Ligao is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon Material 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Ligao Foods go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Ligao Foods
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to under-perform the Ligao Foods. In addition to that, Jinsanjiang Silicon is 1.46 times more volatile than Ligao Foods CoLtd. It trades about -0.12 of its total potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.05 per unit of volatility. If you would invest 3,949 in Ligao Foods CoLtd on October 30, 2024 and sell it today you would earn a total of 75.00 from holding Ligao Foods CoLtd or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Ligao Foods CoLtd |
Jinsanjiang Silicon and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Ligao Foods
The main advantage of trading using opposite Jinsanjiang Silicon and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
| Ligao Foods vs. Kuang Chi Technologies | Ligao Foods vs. Dhc Software Co | Ligao Foods vs. Runjian Communication Co | Ligao Foods vs. Bank of Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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