Correlation Between Guangzhou Restaurants and Zoje Resources
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Zoje Resources Investment, you can compare the effects of market volatilities on Guangzhou Restaurants and Zoje Resources 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 Restaurants with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Zoje Resources.
Diversification Opportunities for Guangzhou Restaurants and Zoje Resources
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zoje is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Guangzhou Restaurants 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 Restaurants Group are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Zoje Resources go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Zoje Resources
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to generate 0.44 times more return on investment than Zoje Resources. However, Guangzhou Restaurants Group is 2.25 times less risky than Zoje Resources. It trades about -0.08 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about -0.11 per unit of risk. If you would invest 1,599 in Guangzhou Restaurants Group on November 4, 2024 and sell it today you would lose (31.00) from holding Guangzhou Restaurants Group or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. Zoje Resources Investment
Performance |
| Timeline |
| Guangzhou Restaurants |
| Zoje Resources Investment |
Guangzhou Restaurants and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Zoje Resources
The main advantage of trading using opposite Guangzhou Restaurants and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Guangzhou Restaurants vs. Suzhou Weizhixiang Food | Guangzhou Restaurants vs. JuneYao Dairy Co | Guangzhou Restaurants vs. Youyou Foods Co | Guangzhou Restaurants vs. Iat Automobile Technology |
| Zoje Resources vs. Shengda Mining Co | Zoje Resources vs. Sino Platinum Metals Co | Zoje Resources vs. Shanghai Yanpu Metal | Zoje Resources vs. Guangdong Jingyi 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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