Correlation Between Guangzhou Restaurants and Postal Savings
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By analyzing existing cross correlation between Guangzhou Restaurants Group and Postal Savings Bank, you can compare the effects of market volatilities on Guangzhou Restaurants and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Postal Savings.
Diversification Opportunities for Guangzhou Restaurants and Postal Savings
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Postal is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Postal Savings go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Postal Savings
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the Postal Savings. In addition to that, Guangzhou Restaurants is 1.07 times more volatile than Postal Savings Bank. It trades about -0.08 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.07 per unit of volatility. If you would invest 534.00 in Postal Savings Bank on November 4, 2024 and sell it today you would earn a total of 7.00 from holding Postal Savings Bank or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. Postal Savings Bank
Performance |
| Timeline |
| Guangzhou Restaurants |
| Postal Savings Bank |
Guangzhou Restaurants and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Postal Savings
The main advantage of trading using opposite Guangzhou Restaurants and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Guangzhou Restaurants vs. Suzhou Weizhixiang Food | Guangzhou Restaurants vs. JuneYao Dairy Co | Guangzhou Restaurants vs. Youyou Foods Co | Guangzhou Restaurants vs. Iat Automobile Technology |
| Postal Savings vs. Hangzhou Pinming Software | Postal Savings vs. Luyin Investment Group | Postal Savings vs. Nuode Investment Co | Postal Savings vs. China Asset 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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