Correlation Between Guangzhou Restaurants and BYD Co
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Restaurants Group and BYD Co Ltd, you can compare the effects of market volatilities on Guangzhou Restaurants and BYD Co 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 BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and BYD Co.
Diversification Opportunities for Guangzhou Restaurants and BYD Co
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and BYD is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co 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 BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and BYD Co go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and BYD Co
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the BYD Co. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Restaurants Group is 1.02 times less risky than BYD Co. The stock trades about -0.05 of its potential returns per unit of risk. The BYD Co Ltd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 27,735 in BYD Co Ltd on October 16, 2024 and sell it today you would lose (1,135) from holding BYD Co Ltd or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. BYD Co Ltd
Performance |
| Timeline |
| Guangzhou Restaurants |
| BYD Co |
Guangzhou Restaurants and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and BYD Co
The main advantage of trading using opposite Guangzhou Restaurants and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Guangzhou Restaurants vs. Holitech Technology Co | Guangzhou Restaurants vs. Zotye Automobile Co | Guangzhou Restaurants vs. Bus Online Co | Guangzhou Restaurants vs. Cultural Investment Holdings |
| BYD Co vs. Guangdong Qunxing Toys | BYD Co vs. Innovative Medical Management | BYD Co vs. Kingclean Electric Co | BYD Co vs. Guangzhou Restaurants Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |