Correlation Between Bank of Communications and Guangzhou Restaurants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Guangzhou Restaurants.
Diversification Opportunities for Bank of Communications and Guangzhou Restaurants
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Guangzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Bank of Communications and Guangzhou Restaurants
Assuming the 90 days trading horizon Bank of Communications is expected to generate 1.82 times less return on investment than Guangzhou Restaurants. But when comparing it to its historical volatility, Bank of Communications is 1.71 times less risky than Guangzhou Restaurants. It trades about 0.12 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,620 in Guangzhou Restaurants Group on September 28, 2024 and sell it today you would earn a total of 89.00 from holding Guangzhou Restaurants Group or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Bank of Communications |
| Guangzhou Restaurants |
Bank of Communications and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Guangzhou Restaurants
The main advantage of trading using opposite Bank of Communications and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Industrial and Commercial | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. Agricultural Bank of | Bank of Communications vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |