Correlation Between Sublime China and Guangzhou KDT
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By analyzing existing cross correlation between Sublime China Information and Guangzhou KDT Machinery, you can compare the effects of market volatilities on Sublime China and Guangzhou KDT 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 Sublime China with a short position of Guangzhou KDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sublime China and Guangzhou KDT.
Diversification Opportunities for Sublime China and Guangzhou KDT
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sublime and Guangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sublime China Information and Guangzhou KDT Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KDT Machinery and Sublime China 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 Sublime China Information are associated (or correlated) with Guangzhou KDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KDT Machinery has no effect on the direction of Sublime China i.e., Sublime China and Guangzhou KDT go up and down completely randomly.
Pair Corralation between Sublime China and Guangzhou KDT
Assuming the 90 days trading horizon Sublime China Information is expected to generate 3.46 times more return on investment than Guangzhou KDT. However, Sublime China is 3.46 times more volatile than Guangzhou KDT Machinery. It trades about 0.17 of its potential returns per unit of risk. Guangzhou KDT Machinery is currently generating about -0.07 per unit of risk. If you would invest 5,830 in Sublime China Information on October 30, 2024 and sell it today you would earn a total of 2,178 from holding Sublime China Information or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sublime China Information vs. Guangzhou KDT Machinery
Performance |
| Timeline |
| Sublime China Information |
| Guangzhou KDT Machinery |
Sublime China and Guangzhou KDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sublime China and Guangzhou KDT
The main advantage of trading using opposite Sublime China and Guangzhou KDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sublime China position performs unexpectedly, Guangzhou KDT 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 KDT will offset losses from the drop in Guangzhou KDT's long position.| Sublime China vs. Luolai Home Textile | Sublime China vs. Western Metal Materials | Sublime China vs. Nanjing OLO Home | Sublime China vs. Pengxin International Mining |
| Guangzhou KDT vs. Suzhou Oriental Semiconductor | Guangzhou KDT vs. Ingenic Semiconductor | Guangzhou KDT vs. Shanghai V Test Semiconductor | Guangzhou KDT vs. Cansino Biologics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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