Correlation Between Jiangsu Financial and Ligao Foods
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Ligao Foods CoLtd, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Ligao Foods.
Diversification Opportunities for Jiangsu Financial and Ligao Foods
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Ligao is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Ligao Foods go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Ligao Foods
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.4 times more return on investment than Ligao Foods. However, Jiangsu Financial Leasing is 2.49 times less risky than Ligao Foods. It trades about -0.07 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 526.00 in Jiangsu Financial Leasing on January 24, 2025 and sell it today you would lose (12.00) from holding Jiangsu Financial Leasing or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Ligao Foods CoLtd |
Jiangsu Financial and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Ligao Foods
The main advantage of trading using opposite Jiangsu Financial and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Suzhou Oriental Semiconductor | Jiangsu Financial vs. Hubei Tech Semiconductors | Jiangsu Financial vs. Chengtun Mining Group | Jiangsu Financial vs. Hua Hong Semiconductor |
| Ligao Foods vs. Soyea Technology Co | Ligao Foods vs. XCMG Construction Machinery | Ligao Foods vs. Citic Guoan Wine | Ligao Foods vs. Senci Electric Machinery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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