Correlation Between SSAW Hotels and Sublime China
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By analyzing existing cross correlation between SSAW Hotels Resorts and Sublime China Information, you can compare the effects of market volatilities on SSAW Hotels and Sublime 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 SSAW Hotels with a short position of Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Sublime China.
Diversification Opportunities for SSAW Hotels and Sublime China
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SSAW and Sublime is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China Information and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Sublime China go up and down completely randomly.
Pair Corralation between SSAW Hotels and Sublime China
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Sublime China. But the stock apears to be less risky and, when comparing its historical volatility, SSAW Hotels Resorts is 1.58 times less risky than Sublime China. The stock trades about -0.53 of its potential returns per unit of risk. The Sublime China Information is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 6,367 in Sublime China Information on October 15, 2024 and sell it today you would lose (472.00) from holding Sublime China Information or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Sublime China Information
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Sublime China Information |
SSAW Hotels and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Sublime China
The main advantage of trading using opposite SSAW Hotels and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Sublime 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 Sublime China will offset losses from the drop in Sublime China's long position.| SSAW Hotels vs. Vanfund Urban Investment | SSAW Hotels vs. Techshine Electronics Co | SSAW Hotels vs. Shaanxi Meineng Clean | SSAW Hotels vs. Beijing Mainstreets Investment |
| Sublime China vs. Beijing Yanjing Brewery | Sublime China vs. SSAW Hotels Resorts | Sublime China vs. Vats Liquor Chain | Sublime China vs. Suzhou Industrial Park |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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