Correlation Between Heilongjiang Transport and Ligao Foods
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By analyzing existing cross correlation between Heilongjiang Transport Development and Ligao Foods CoLtd, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Ligao Foods.
Diversification Opportunities for Heilongjiang Transport and Ligao Foods
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heilongjiang and Ligao is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop 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 Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and Ligao Foods go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Ligao Foods
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.0 times more return on investment than Ligao Foods. However, Heilongjiang Transport is 1.0 times more volatile than Ligao Foods CoLtd. It trades about 0.01 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.04 per unit of risk. If you would invest 340.00 in Heilongjiang Transport Development on December 12, 2024 and sell it today you would lose (6.00) from holding Heilongjiang Transport Development or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Heilongjiang Transport |
| Ligao Foods CoLtd |
Heilongjiang Transport and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Ligao Foods
The main advantage of trading using opposite Heilongjiang Transport and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. Camelot Electronics Technology | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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