Correlation Between Agricultural Bank and Ligao Foods
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By analyzing existing cross correlation between Agricultural Bank of and Ligao Foods CoLtd, you can compare the effects of market volatilities on Agricultural 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 Agricultural Bank with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Ligao Foods.
Diversification Opportunities for Agricultural Bank and Ligao Foods
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Ligao is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of 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 Agricultural 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 Agricultural Bank of 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 Agricultural Bank i.e., Agricultural Bank and Ligao Foods go up and down completely randomly.
Pair Corralation between Agricultural Bank and Ligao Foods
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.4 times more return on investment than Ligao Foods. However, Agricultural Bank of is 2.51 times less risky than Ligao Foods. It trades about 0.08 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 344.00 in Agricultural Bank of on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Agricultural Bank of or generate 39.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Agricultural Bank |
| Ligao Foods CoLtd |
Agricultural Bank and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Ligao Foods
The main advantage of trading using opposite Agricultural Bank and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural 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.| Agricultural Bank vs. Fujian Longzhou Transportation | Agricultural Bank vs. Xinjiang Baodi Mining | Agricultural Bank vs. Shengda Mining Co | Agricultural Bank vs. Western Metal Materials |
| Ligao Foods vs. Miracll Chemicals Co | Ligao Foods vs. Do Fluoride Chemicals Co | Ligao Foods vs. Zhongtong Guomai Communication | Ligao Foods vs. Southchip Semiconductor 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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