Correlation Between Xiamen Bank and Ligao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Bank Co and Ligao Foods CoLtd, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Ligao Foods.
Diversification Opportunities for Xiamen Bank and Ligao Foods
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Ligao is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank i.e., Xiamen Bank and Ligao Foods go up and down completely randomly.
Pair Corralation between Xiamen Bank and Ligao Foods
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 3.01 times less return on investment than Ligao Foods. But when comparing it to its historical volatility, Xiamen Bank Co is 2.06 times less risky than Ligao Foods. It trades about 0.03 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,961 in Ligao Foods CoLtd on October 14, 2024 and sell it today you would earn a total of 441.00 from holding Ligao Foods CoLtd or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Xiamen Bank |
| Ligao Foods CoLtd |
Xiamen Bank and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Ligao Foods
The main advantage of trading using opposite Xiamen Bank and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. JiShi Media Co | Xiamen Bank vs. Zhejiang Qianjiang Motorcycle | Xiamen Bank vs. Guangdong Jinma Entertainment | Xiamen Bank vs. Thinkingdom Media Group |
| Ligao Foods vs. Longxing Chemical Stock | Ligao Foods vs. Huaxia Fund Management | Ligao Foods vs. Guangzhou Jointas Chemical | Ligao Foods vs. JCHX Mining Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |