Correlation Between Cultural Investment and Ligao Foods
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By analyzing existing cross correlation between Cultural Investment Holdings and Ligao Foods CoLtd, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Ligao Foods.
Diversification Opportunities for Cultural Investment and Ligao Foods
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Ligao is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings 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 Cultural Investment 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 Cultural Investment Holdings 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 Cultural Investment i.e., Cultural Investment and Ligao Foods go up and down completely randomly.
Pair Corralation between Cultural Investment and Ligao Foods
Assuming the 90 days trading horizon Cultural Investment is expected to generate 2.31 times less return on investment than Ligao Foods. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.17 times less risky than Ligao Foods. It trades about 0.03 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,029 in Ligao Foods CoLtd on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Ligao Foods CoLtd or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Cultural Investment |
| Ligao Foods CoLtd |
Cultural Investment and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Ligao Foods
The main advantage of trading using opposite Cultural Investment and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
| Ligao Foods vs. China Petroleum Chemical | Ligao Foods vs. PetroChina Co Ltd | Ligao Foods vs. China State Construction | Ligao Foods vs. China Railway Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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