Correlation Between Ming Yang and Ligao Foods
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By analyzing existing cross correlation between Ming Yang Smart and Ligao Foods CoLtd, you can compare the effects of market volatilities on Ming Yang 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 Ming Yang with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Ligao Foods.
Diversification Opportunities for Ming Yang and Ligao Foods
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Ligao is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart 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 Ming Yang 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 Ming Yang Smart 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 Ming Yang i.e., Ming Yang and Ligao Foods go up and down completely randomly.
Pair Corralation between Ming Yang and Ligao Foods
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.79 times more return on investment than Ligao Foods. However, Ming Yang Smart is 1.27 times less risky than Ligao Foods. It trades about -0.05 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 2,611 in Ming Yang Smart on September 28, 2024 and sell it today you would lose (1,326) from holding Ming Yang Smart or give up 50.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Ming Yang Smart |
| Ligao Foods CoLtd |
Ming Yang and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Ligao Foods
The main advantage of trading using opposite Ming Yang and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang 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.| Ming Yang vs. Cicc Fund Management | Ming Yang vs. UE Furniture Co | Ming Yang vs. Xiamen Goldenhome Co | Ming Yang vs. DO Home Collection |
| Ligao Foods vs. Ming Yang Smart | Ligao Foods vs. 159681 | Ligao Foods vs. 159005 | Ligao Foods vs. Loctek Ergonomic 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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