Correlation Between Dr Peng and Ligao Foods
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By analyzing existing cross correlation between Dr Peng Telecom and Ligao Foods CoLtd, you can compare the effects of market volatilities on Dr Peng 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 Dr Peng with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Ligao Foods.
Diversification Opportunities for Dr Peng and Ligao Foods
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between 600804 and Ligao is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom 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 Dr Peng 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 Dr Peng Telecom 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 Dr Peng i.e., Dr Peng and Ligao Foods go up and down completely randomly.
Pair Corralation between Dr Peng and Ligao Foods
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Ligao Foods. In addition to that, Dr Peng is 1.63 times more volatile than Ligao Foods CoLtd. It trades about -0.06 of its total potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.06 per unit of volatility. If you would invest 4,024 in Ligao Foods CoLtd on November 28, 2024 and sell it today you would lose (94.00) from holding Ligao Foods CoLtd or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Dr Peng Telecom |
| Ligao Foods CoLtd |
Dr Peng and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Ligao Foods
The main advantage of trading using opposite Dr Peng and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng 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.| Dr Peng vs. Changjiang Publishing Media | Dr Peng vs. Jinhui Mining Co | Dr Peng vs. Xinhua Winshare Publishing | Dr Peng vs. Beijing Kaiwen Education |
| Ligao Foods vs. China Eastern Airlines | Ligao Foods vs. Sinocat Environmental Technology | Ligao Foods vs. Sinosteel Engineering and | Ligao Foods vs. Xizi Clean Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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