Correlation Between Guangzhou Restaurants and Wonders Information
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Wonders Information, you can compare the effects of market volatilities on Guangzhou Restaurants and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Wonders Information.
Diversification Opportunities for Guangzhou Restaurants and Wonders Information
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Wonders is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Wonders Information go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Wonders Information
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the Wonders Information. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Restaurants Group is 2.12 times less risky than Wonders Information. The stock trades about -0.04 of its potential returns per unit of risk. The Wonders Information is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 988.00 in Wonders Information on October 26, 2024 and sell it today you would lose (263.00) from holding Wonders Information or give up 26.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. Wonders Information
Performance |
| Timeline |
| Guangzhou Restaurants |
| Wonders Information |
Guangzhou Restaurants and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Wonders Information
The main advantage of trading using opposite Guangzhou Restaurants and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| Guangzhou Restaurants vs. Tianshui Huatian Technology | Guangzhou Restaurants vs. HUAQIN TECHNOLOGY LTD | Guangzhou Restaurants vs. Montage Technology Co | Guangzhou Restaurants vs. Jinhe Biotechnology Co |
| Wonders Information vs. Wondershare Technology Co | Wonders Information vs. HaiXin Foods Co | Wonders Information vs. Soyea Technology Co | Wonders Information vs. Gan Yuan Foods |
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.
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