Correlation Between Beijing Roborock and Ligao Foods
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By analyzing existing cross correlation between Beijing Roborock Technology and Ligao Foods CoLtd, you can compare the effects of market volatilities on Beijing Roborock 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 Beijing Roborock with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Ligao Foods.
Diversification Opportunities for Beijing Roborock and Ligao Foods
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Ligao is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology 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 Beijing Roborock 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 Beijing Roborock Technology 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 Beijing Roborock i.e., Beijing Roborock and Ligao Foods go up and down completely randomly.
Pair Corralation between Beijing Roborock and Ligao Foods
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the Ligao Foods. In addition to that, Beijing Roborock is 1.03 times more volatile than Ligao Foods CoLtd. It trades about -0.05 of its total potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.35 per unit of volatility. If you would invest 3,508 in Ligao Foods CoLtd on November 5, 2024 and sell it today you would earn a total of 516.00 from holding Ligao Foods CoLtd or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Beijing Roborock Tec |
| Ligao Foods CoLtd |
Beijing Roborock and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Ligao Foods
The main advantage of trading using opposite Beijing Roborock and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock 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.| Beijing Roborock vs. Dr Peng Telecom | Beijing Roborock vs. Offcn Education Technology | Beijing Roborock vs. Eastern Communications Co | Beijing Roborock vs. Allwin Telecommunication Co |
| Ligao Foods vs. Fangda Special Steel | Ligao Foods vs. Heilongjiang Transport Development | Ligao Foods vs. Baoshan Iron Steel | Ligao Foods vs. GreenTech Environmental Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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