Correlation Between AVIC Heavy and Guangzhou Restaurants
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By analyzing existing cross correlation between AVIC Heavy Machinery and Guangzhou Restaurants Group, you can compare the effects of market volatilities on AVIC Heavy 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 AVIC Heavy with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Heavy and Guangzhou Restaurants.
Diversification Opportunities for AVIC Heavy and Guangzhou Restaurants
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AVIC and Guangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Heavy Machinery and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and AVIC Heavy 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 AVIC Heavy Machinery 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 AVIC Heavy i.e., AVIC Heavy and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between AVIC Heavy and Guangzhou Restaurants
Assuming the 90 days trading horizon AVIC Heavy Machinery is expected to generate 1.12 times more return on investment than Guangzhou Restaurants. However, AVIC Heavy is 1.12 times more volatile than Guangzhou Restaurants Group. It trades about -0.18 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.55 per unit of risk. If you would invest 1,996 in AVIC Heavy Machinery on October 16, 2024 and sell it today you would lose (137.00) from holding AVIC Heavy Machinery or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Heavy Machinery vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| AVIC Heavy Machinery |
| Guangzhou Restaurants |
AVIC Heavy and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Heavy and Guangzhou Restaurants
The main advantage of trading using opposite AVIC Heavy and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Heavy 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.| AVIC Heavy vs. Biwin Storage Technology | AVIC Heavy vs. PetroChina Co Ltd | AVIC Heavy vs. Industrial and Commercial | AVIC Heavy vs. China Construction Bank |
| Guangzhou Restaurants vs. Shantou Wanshun Package | Guangzhou Restaurants vs. Rising Nonferrous Metals | Guangzhou Restaurants vs. Shanghai Yanpu Metal | Guangzhou Restaurants vs. Ye Chiu Metal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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