Correlation Between Guangzhou Restaurants and Impulse Qingdao
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Impulse Qingdao Health, you can compare the effects of market volatilities on Guangzhou Restaurants and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Impulse Qingdao.
Diversification Opportunities for Guangzhou Restaurants and Impulse Qingdao
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Impulse is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Impulse Qingdao
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Restaurants Group is 1.56 times less risky than Impulse Qingdao. The stock trades about -0.04 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,391 in Impulse Qingdao Health on October 29, 2024 and sell it today you would earn a total of 905.00 from holding Impulse Qingdao Health or generate 65.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. Impulse Qingdao Health
Performance |
| Timeline |
| Guangzhou Restaurants |
| Impulse Qingdao Health |
Guangzhou Restaurants and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Impulse Qingdao
The main advantage of trading using opposite Guangzhou Restaurants and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| Guangzhou Restaurants vs. Shantui Construction Machinery | Guangzhou Restaurants vs. Lutian Machinery Co | Guangzhou Restaurants vs. Xiangpiaopiao Food Co | Guangzhou Restaurants vs. Anji Foodstuff Co |
| Impulse Qingdao vs. Youngy Health Co | Impulse Qingdao vs. Panda Financial Holding | Impulse Qingdao vs. Andon Health Co | Impulse Qingdao vs. Sanbo Hospital Management |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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