Correlation Between Citic Offshore and Success Electronics
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By analyzing existing cross correlation between Citic Offshore Helicopter and Success Electronics, you can compare the effects of market volatilities on Citic Offshore and Success Electronics 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 Citic Offshore with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Success Electronics.
Diversification Opportunities for Citic Offshore and Success Electronics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citic and Success is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and Citic Offshore 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 Citic Offshore Helicopter are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Citic Offshore i.e., Citic Offshore and Success Electronics go up and down completely randomly.
Pair Corralation between Citic Offshore and Success Electronics
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to generate 0.89 times more return on investment than Success Electronics. However, Citic Offshore Helicopter is 1.12 times less risky than Success Electronics. It trades about 0.13 of its potential returns per unit of risk. Success Electronics is currently generating about 0.04 per unit of risk. If you would invest 2,217 in Citic Offshore Helicopter on November 7, 2024 and sell it today you would earn a total of 103.00 from holding Citic Offshore Helicopter or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Success Electronics
Performance |
| Timeline |
| Citic Offshore Helicopter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Success Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citic Offshore and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Success Electronics
The main advantage of trading using opposite Citic Offshore and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.The idea behind Citic Offshore Helicopter and Success Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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