Correlation Between Harbin Hatou and Ligao Foods
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By analyzing existing cross correlation between Harbin Hatou Investment and Ligao Foods CoLtd, you can compare the effects of market volatilities on Harbin Hatou 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 Harbin Hatou with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Ligao Foods.
Diversification Opportunities for Harbin Hatou and Ligao Foods
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Ligao is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment 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 Harbin Hatou 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 Harbin Hatou Investment 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 Harbin Hatou i.e., Harbin Hatou and Ligao Foods go up and down completely randomly.
Pair Corralation between Harbin Hatou and Ligao Foods
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.08 times more return on investment than Ligao Foods. However, Harbin Hatou is 1.08 times more volatile than Ligao Foods CoLtd. It trades about 0.11 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.11 per unit of risk. If you would invest 714.00 in Harbin Hatou Investment on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Harbin Hatou Investment or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Harbin Hatou Investment |
| Ligao Foods CoLtd |
Harbin Hatou and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Ligao Foods
The main advantage of trading using opposite Harbin Hatou and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou 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.| Harbin Hatou vs. Ping An Insurance | Harbin Hatou vs. CICC Fund Management | Harbin Hatou vs. AVIC Fund Management | Harbin Hatou vs. Caihong Display Devices |
| Ligao Foods vs. Poly Real Estate | Ligao Foods vs. China Vanke Co | Ligao Foods vs. China Merchants Shekou | Ligao Foods vs. Huafa Industrial Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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