Correlation Between Guangzhou Tinci and Guangzhou Restaurants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Guangzhou Tinci and Guangzhou Restaurants 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 Guangzhou Tinci with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Guangzhou Restaurants.
Diversification Opportunities for Guangzhou Tinci and Guangzhou Restaurants
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and Guangzhou Tinci 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 Guangzhou Tinci Materials are associated (or correlated) with Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Guangzhou Restaurants
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Guangzhou Restaurants. In addition to that, Guangzhou Tinci is 1.19 times more volatile than Guangzhou Restaurants Group. It trades about -0.38 of its total potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.37 per unit of volatility. If you would invest 1,735 in Guangzhou Restaurants Group on October 18, 2024 and sell it today you would lose (212.00) from holding Guangzhou Restaurants Group or give up 12.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Guangzhou Restaurants |
Guangzhou Tinci and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Guangzhou Restaurants
The main advantage of trading using opposite Guangzhou Tinci and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Guangzhou Tinci vs. Jonjee Hi tech Industrial | Guangzhou Tinci vs. Orinko Advanced Plastics | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Shanghai Phichem Material |
| Guangzhou Restaurants vs. Advanced Technology Materials | Guangzhou Restaurants vs. Jiangnan Mould Plastic | Guangzhou Restaurants vs. JuneYao Dairy Co | Guangzhou Restaurants vs. Guangzhou Tinci Materials |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |