Correlation Between Jiujiang Shanshui and Ligao Foods
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Ligao Foods CoLtd, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Ligao Foods.
Diversification Opportunities for Jiujiang Shanshui and Ligao Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Ligao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Ligao Foods go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Ligao Foods
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.78 times more return on investment than Ligao Foods. However, Jiujiang Shanshui Technology is 1.29 times less risky than Ligao Foods. It trades about -0.01 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.06 per unit of risk. If you would invest 2,009 in Jiujiang Shanshui Technology on August 27, 2024 and sell it today you would lose (417.00) from holding Jiujiang Shanshui Technology or give up 20.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Jiujiang Shanshui |
| Ligao Foods CoLtd |
Jiujiang Shanshui and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Ligao Foods
The main advantage of trading using opposite Jiujiang Shanshui and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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