Correlation Between Chinese Universe and Guangzhou Restaurants
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By analyzing existing cross correlation between Chinese Universe Publishing and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Guangzhou Restaurants.
Diversification Opportunities for Chinese Universe and Guangzhou Restaurants
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Guangzhou is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Chinese Universe and Guangzhou Restaurants
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Guangzhou Restaurants. In addition to that, Chinese Universe is 1.41 times more volatile than Guangzhou Restaurants Group. It trades about -0.2 of its total potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about 0.02 per unit of volatility. If you would invest 1,601 in Guangzhou Restaurants Group on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Guangzhou Restaurants Group or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Chinese Universe Pub |
| Guangzhou Restaurants |
Chinese Universe and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Guangzhou Restaurants
The main advantage of trading using opposite Chinese Universe and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. BYD Co Ltd | Chinese Universe vs. Agricultural Bank of | Chinese Universe vs. Industrial and Commercial | Chinese Universe vs. China State Construction |
| Guangzhou Restaurants vs. Chinese Universe Publishing | Guangzhou Restaurants vs. Qingdao Foods Co | Guangzhou Restaurants vs. HaiXin Foods Co | Guangzhou Restaurants vs. Xiamen Jihong Package |
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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