Correlation Between Spring Airlines and Ligao Foods
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By analyzing existing cross correlation between Spring Airlines Co and Ligao Foods CoLtd, you can compare the effects of market volatilities on Spring Airlines 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 Spring Airlines with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Ligao Foods.
Diversification Opportunities for Spring Airlines and Ligao Foods
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Spring and Ligao is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co 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 Spring Airlines 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 Spring Airlines Co 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 Spring Airlines i.e., Spring Airlines and Ligao Foods go up and down completely randomly.
Pair Corralation between Spring Airlines and Ligao Foods
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the Ligao Foods. But the stock apears to be less risky and, when comparing its historical volatility, Spring Airlines Co is 1.8 times less risky than Ligao Foods. The stock trades about -0.2 of its potential returns per unit of risk. The Ligao Foods CoLtd is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,066 in Ligao Foods CoLtd on October 28, 2024 and sell it today you would lose (133.00) from holding Ligao Foods CoLtd or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Spring Airlines |
| Ligao Foods CoLtd |
Spring Airlines and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Ligao Foods
The main advantage of trading using opposite Spring Airlines and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines 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.| Spring Airlines vs. GRIPM Advanced Materials | Spring Airlines vs. Qingdao Foods Co | Spring Airlines vs. Suzhou Xingye Material | Spring Airlines vs. Eastroc Beverage Group |
| Ligao Foods vs. Kweichow Moutai Co | Ligao Foods vs. Contemporary Amperex Technology | Ligao Foods vs. G bits Network Technology | Ligao Foods vs. Beijing Roborock Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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