Correlation Between Guangzhou Restaurants and Beken Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Restaurants Group and Beken Corp, you can compare the effects of market volatilities on Guangzhou Restaurants and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Beken Corp.
Diversification Opportunities for Guangzhou Restaurants and Beken Corp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Beken is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Beken Corp go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Beken Corp
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to generate 0.53 times more return on investment than Beken Corp. However, Guangzhou Restaurants Group is 1.89 times less risky than Beken Corp. It trades about 0.17 of its potential returns per unit of risk. Beken Corp is currently generating about 0.08 per unit of risk. If you would invest 1,594 in Guangzhou Restaurants Group on September 27, 2024 and sell it today you would earn a total of 122.00 from holding Guangzhou Restaurants Group or generate 7.65% 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. Beken Corp
Performance |
| Timeline |
| Guangzhou Restaurants |
| Beken Corp |
Guangzhou Restaurants and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and Beken Corp
The main advantage of trading using opposite Guangzhou Restaurants and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Guangzhou Restaurants vs. Bank of China | Guangzhou Restaurants vs. Kweichow Moutai Co | Guangzhou Restaurants vs. PetroChina Co Ltd | Guangzhou Restaurants vs. Bank of Communications |
| Beken Corp vs. Guangzhou Restaurants Group | Beken Corp vs. Hefei Metalforming Mach | Beken Corp vs. Guangdong Wens Foodstuff | Beken Corp vs. Bus Online Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |