Correlation Between Guangzhou Restaurants and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Restaurants Group and New China Life, you can compare the effects of market volatilities on Guangzhou Restaurants and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and New China.
Diversification Opportunities for Guangzhou Restaurants and New China
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and New is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and New China go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and New China
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to generate 0.51 times more return on investment than New China. However, Guangzhou Restaurants Group is 1.97 times less risky than New China. It trades about 0.06 of its potential returns per unit of risk. New China Life is currently generating about 0.01 per unit of risk. If you would invest 1,661 in Guangzhou Restaurants Group on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Guangzhou Restaurants Group or generate 2.23% 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. New China Life
Performance |
| Timeline |
| Guangzhou Restaurants |
| New China Life |
Guangzhou Restaurants and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and New China
The main advantage of trading using opposite Guangzhou Restaurants and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Guangzhou Restaurants vs. New China Life | Guangzhou Restaurants vs. Ming Yang Smart | Guangzhou Restaurants vs. 159681 | Guangzhou Restaurants vs. 159005 |
| New China vs. Aurora Optoelectronics Co | New China vs. Leyard Optoelectronic | New China vs. TongFu Microelectronics Co | New China vs. Weihai Honglin Electronic |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |