Correlation Between Guangzhou Jointas and Guangzhou Restaurants
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Guangzhou Jointas 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 Jointas with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Guangzhou Restaurants.
Diversification Opportunities for Guangzhou Jointas and Guangzhou Restaurants
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical 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 Jointas 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 Jointas Chemical 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 Jointas i.e., Guangzhou Jointas and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Guangzhou Restaurants
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Guangzhou Restaurants. In addition to that, Guangzhou Jointas is 1.26 times more volatile than Guangzhou Restaurants Group. It trades about -0.03 of its total potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.04 per unit of volatility. If you would invest 2,566 in Guangzhou Restaurants Group on September 4, 2024 and sell it today you would lose (868.00) from holding Guangzhou Restaurants Group or give up 33.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Guangzhou Jointas |
| Guangzhou Restaurants |
Guangzhou Jointas and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Guangzhou Restaurants
The main advantage of trading using opposite Guangzhou Jointas and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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 Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Guangzhou Restaurants vs. New China Life | Guangzhou Restaurants vs. Ming Yang Smart | Guangzhou Restaurants vs. 159681 | Guangzhou Restaurants vs. 159005 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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