Correlation Between Guangzhou Restaurants and Kingsignal Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Restaurants Group and Kingsignal Technology Co, you can compare the effects of market volatilities on Guangzhou Restaurants and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Kingsignal Technology.
Diversification Opportunities for Guangzhou Restaurants and Kingsignal Technology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Kingsignal is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Kingsignal Technology
Assuming the 90 days trading horizon Guangzhou Restaurants is expected to generate 6.05 times less return on investment than Kingsignal Technology. But when comparing it to its historical volatility, Guangzhou Restaurants Group is 1.59 times less risky than Kingsignal Technology. It trades about 0.02 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Kingsignal Technology Co on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Kingsignal Technology Co or generate 4.63% 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. Kingsignal Technology Co
Performance |
| Timeline |
| Guangzhou Restaurants |
| Kingsignal Technology |
Guangzhou Restaurants and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Kingsignal Technology
The main advantage of trading using opposite Guangzhou Restaurants and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Guangzhou Restaurants vs. Hengdian Entertainment Co | Guangzhou Restaurants vs. Longjian Road Bridge | Guangzhou Restaurants vs. Juneyao Airlines | Guangzhou Restaurants vs. Focus Media Information |
| Kingsignal Technology vs. Industrial and Commercial | Kingsignal Technology vs. China Construction Bank | Kingsignal Technology vs. Bank of China | Kingsignal Technology vs. Agricultural Bank of |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |