Correlation Between Guangzhou Restaurants and Uroica Mining
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Uroica Mining Safety, you can compare the effects of market volatilities on Guangzhou Restaurants and Uroica Mining 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 Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Uroica Mining.
Diversification Opportunities for Guangzhou Restaurants and Uroica Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Uroica is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety 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 Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Uroica Mining go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Uroica Mining
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the Uroica Mining. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Restaurants Group is 1.76 times less risky than Uroica Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Uroica Mining Safety is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Uroica Mining Safety on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Uroica Mining Safety or generate 11.87% 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. Uroica Mining Safety
Performance |
| Timeline |
| Guangzhou Restaurants |
| Uroica Mining Safety |
Guangzhou Restaurants and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Uroica Mining
The main advantage of trading using opposite Guangzhou Restaurants and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Uroica Mining 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 Uroica Mining will offset losses from the drop in Uroica Mining's long position.| Guangzhou Restaurants vs. Lutian Machinery Co | Guangzhou Restaurants vs. PetroChina Co Ltd | Guangzhou Restaurants vs. Bank of China | Guangzhou Restaurants vs. Gansu Jiu Steel |
| Uroica Mining vs. Agricultural Bank of | Uroica Mining vs. Industrial and Commercial | Uroica Mining vs. Bank of China | Uroica Mining vs. PetroChina Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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