Correlation Between Guangzhou Restaurants and Guangdong Jingyi
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Guangzhou Restaurants and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Guangdong Jingyi.
Diversification Opportunities for Guangzhou Restaurants and Guangdong Jingyi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Guangdong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Guangdong Jingyi
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Restaurants Group is 1.44 times less risky than Guangdong Jingyi. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 696.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Guangdong Jingyi Metal or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Guangzhou Restaurants |
| Guangdong Jingyi Metal |
Guangzhou Restaurants and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Guangdong Jingyi
The main advantage of trading using opposite Guangzhou Restaurants and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Guangzhou Restaurants vs. New China Life | Guangzhou Restaurants vs. Ming Yang Smart | Guangzhou Restaurants vs. 159681 | Guangzhou Restaurants vs. 159005 |
| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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