Correlation Between Postal Savings and Guangzhou Restaurants
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By analyzing existing cross correlation between Postal Savings Bank and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Postal Savings 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 Postal Savings with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Guangzhou Restaurants.
Diversification Opportunities for Postal Savings and Guangzhou Restaurants
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Guangzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and Postal Savings 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 Postal Savings Bank 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 Postal Savings i.e., Postal Savings and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Postal Savings and Guangzhou Restaurants
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.64 times more return on investment than Guangzhou Restaurants. However, Postal Savings Bank is 1.57 times less risky than Guangzhou Restaurants. It trades about 0.13 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about 0.02 per unit of risk. If you would invest 530.00 in Postal Savings Bank on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Postal Savings Bank or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Postal Savings Bank |
| Guangzhou Restaurants |
Postal Savings and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Guangzhou Restaurants
The main advantage of trading using opposite Postal Savings and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings 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.| Postal Savings vs. Guangzhou Restaurants Group | Postal Savings vs. Anhui Fuhuang Steel | Postal Savings vs. Changjiang Jinggong Steel | Postal Savings vs. Bengang Steel Plates |
| Guangzhou Restaurants vs. Hengdian Entertainment Co | Guangzhou Restaurants vs. Longjian Road Bridge | Guangzhou Restaurants vs. Juneyao Airlines | Guangzhou Restaurants vs. Focus Media Information |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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