Correlation Between Changjiang Publishing and Ligao Foods
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By analyzing existing cross correlation between Changjiang Publishing Media and Ligao Foods CoLtd, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Ligao Foods.
Diversification Opportunities for Changjiang Publishing and Ligao Foods
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changjiang and Ligao is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media 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 Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Ligao Foods go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Ligao Foods
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.6 times more return on investment than Ligao Foods. However, Changjiang Publishing Media is 1.65 times less risky than Ligao Foods. It trades about -0.16 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.12 per unit of risk. If you would invest 932.00 in Changjiang Publishing Media on October 26, 2024 and sell it today you would lose (59.00) from holding Changjiang Publishing Media or give up 6.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Changjiang Publishing Media vs. Ligao Foods CoLtd
Performance |
Timeline |
Changjiang Publishing |
Ligao Foods CoLtd |
Changjiang Publishing and Ligao Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changjiang Publishing and Ligao Foods
The main advantage of trading using opposite Changjiang Publishing and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.Changjiang Publishing vs. Bus Online Co | Changjiang Publishing vs. Holitech Technology Co | Changjiang Publishing vs. Gome Telecom Equipment | Changjiang Publishing vs. Cultural Investment Holdings |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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