Correlation Between Shanghai Yanpu and Guangzhou Restaurants
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Shanghai Yanpu and Guangzhou Restaurants 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 Shanghai Yanpu with a short position of Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Guangzhou Restaurants.
Diversification Opportunities for Shanghai Yanpu and Guangzhou Restaurants
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Guangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants and Shanghai Yanpu 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 Shanghai Yanpu Metal are associated (or correlated) with Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Guangzhou Restaurants
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.47 times more return on investment than Guangzhou Restaurants. However, Shanghai Yanpu is 1.47 times more volatile than Guangzhou Restaurants Group. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.03 per unit of risk. If you would invest 3,836 in Shanghai Yanpu Metal on October 30, 2024 and sell it today you would lose (209.00) from holding Shanghai Yanpu Metal or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Guangzhou Restaurants |
Shanghai Yanpu and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Guangzhou Restaurants
The main advantage of trading using opposite Shanghai Yanpu and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Jiangsu Pacific Quartz | Shanghai Yanpu vs. Shenzhen Transsion Holdings | Shanghai Yanpu vs. Beijing Roborock Technology |
| Guangzhou Restaurants vs. Huizhou Speed Wireless | Guangzhou Restaurants vs. Grandblue Environment Co | Guangzhou Restaurants vs. Panda Financial Holding | Guangzhou Restaurants vs. Beijing Kingsoft Office |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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