Correlation Between Guangzhou Restaurants and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Restaurants Group and Pengxin International Mining, you can compare the effects of market volatilities on Guangzhou Restaurants and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and Pengxin International.
Diversification Opportunities for Guangzhou Restaurants and Pengxin International
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Pengxin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Guangzhou Restaurants i.e., Guangzhou Restaurants and Pengxin International go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and Pengxin International
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to generate 0.86 times more return on investment than Pengxin International. However, Guangzhou Restaurants Group is 1.17 times less risky than Pengxin International. It trades about 0.17 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.07 per unit of risk. If you would invest 1,330 in Guangzhou Restaurants Group on September 20, 2024 and sell it today you would earn a total of 389.00 from holding Guangzhou Restaurants Group or generate 29.25% 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. Pengxin International Mining
Performance |
Timeline |
Guangzhou Restaurants |
Pengxin International |
Guangzhou Restaurants and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Restaurants and Pengxin International
The main advantage of trading using opposite Guangzhou Restaurants and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.Guangzhou Restaurants vs. Kweichow Moutai Co | Guangzhou Restaurants vs. Shenzhen Mindray Bio Medical | Guangzhou Restaurants vs. Jiangsu Pacific Quartz | Guangzhou Restaurants vs. G bits Network Technology |
Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |