Correlation Between Leaguer Shenzhen and Ligao Foods
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Ligao Foods CoLtd, you can compare the effects of market volatilities on Leaguer Shenzhen 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 Leaguer Shenzhen with a short position of Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Ligao Foods.
Diversification Opportunities for Leaguer Shenzhen and Ligao Foods
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leaguer and Ligao is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron 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 Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics 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 Leaguer Shenzhen i.e., Leaguer Shenzhen and Ligao Foods go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Ligao Foods
Assuming the 90 days trading horizon Leaguer Shenzhen is expected to generate 1.15 times less return on investment than Ligao Foods. In addition to that, Leaguer Shenzhen is 1.11 times more volatile than Ligao Foods CoLtd. It trades about 0.15 of its total potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.2 per unit of volatility. If you would invest 2,331 in Ligao Foods CoLtd on August 31, 2024 and sell it today you would earn a total of 1,255 from holding Ligao Foods CoLtd or generate 53.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Ligao Foods CoLtd |
Leaguer Shenzhen and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Ligao Foods
The main advantage of trading using opposite Leaguer Shenzhen and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen 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.| Leaguer Shenzhen vs. Kweichow Moutai Co | Leaguer Shenzhen vs. NAURA Technology Group | Leaguer Shenzhen vs. APT Medical | Leaguer Shenzhen vs. Contemporary Amperex Technology |
| Ligao Foods vs. Lutian Machinery Co | Ligao Foods vs. PetroChina Co Ltd | Ligao Foods vs. Bank of China | Ligao Foods vs. Gansu Jiu Steel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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