Correlation Between Guangzhou Automobile and Sublime China
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By analyzing existing cross correlation between Guangzhou Automobile Group and Sublime China Information, you can compare the effects of market volatilities on Guangzhou Automobile 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 Guangzhou Automobile with a short position of Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Sublime China.
Diversification Opportunities for Guangzhou Automobile and Sublime China
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Sublime is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group 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 Guangzhou Automobile 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 Automobile Group 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 Guangzhou Automobile i.e., Guangzhou Automobile and Sublime China go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Sublime China
Assuming the 90 days trading horizon Guangzhou Automobile is expected to generate 4.84 times less return on investment than Sublime China. But when comparing it to its historical volatility, Guangzhou Automobile Group is 1.85 times less risky than Sublime China. It trades about 0.04 of its potential returns per unit of risk. Sublime China Information is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,122 in Sublime China Information on October 18, 2024 and sell it today you would earn a total of 2,068 from holding Sublime China Information or generate 50.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Sublime China Information
Performance |
| Timeline |
| Guangzhou Automobile |
| Sublime China Information |
Guangzhou Automobile and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Sublime China
The main advantage of trading using opposite Guangzhou Automobile and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile 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.| Guangzhou Automobile vs. Zhejiang Construction Investment | Guangzhou Automobile vs. Ping An Insurance | Guangzhou Automobile vs. Eastroc Beverage Group | Guangzhou Automobile vs. Cultural Investment Holdings |
| Sublime China vs. Guangzhou Automobile Group | Sublime China vs. Dongfeng Automobile Co | Sublime China vs. Sinomach Automobile Co | Sublime China vs. CIMC Vehicles 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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