Correlation Between Zhongyin Babi and Ligao Foods
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By analyzing existing cross correlation between Zhongyin Babi Food and Ligao Foods CoLtd, you can compare the effects of market volatilities on Zhongyin Babi 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 Zhongyin Babi with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Ligao Foods.
Diversification Opportunities for Zhongyin Babi and Ligao Foods
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongyin and Ligao is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food 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 Zhongyin Babi 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 Zhongyin Babi Food 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 Zhongyin Babi i.e., Zhongyin Babi and Ligao Foods go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Ligao Foods
Assuming the 90 days trading horizon Zhongyin Babi is expected to generate 6.03 times less return on investment than Ligao Foods. But when comparing it to its historical volatility, Zhongyin Babi Food is 1.5 times less risky than Ligao Foods. It trades about 0.0 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,443 in Ligao Foods CoLtd on August 25, 2024 and sell it today you would lose (73.00) from holding Ligao Foods CoLtd or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Zhongyin Babi Food |
| Ligao Foods CoLtd |
Zhongyin Babi and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Ligao Foods
The main advantage of trading using opposite Zhongyin Babi and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi 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.| Zhongyin Babi vs. Aluminum Corp of | Zhongyin Babi vs. COL Digital Publishing | Zhongyin Babi vs. Shaanxi Meineng Clean | Zhongyin Babi vs. Gansu Huangtai Wine marketing |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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