Correlation Between Xian International and CSSC Offshore
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By analyzing existing cross correlation between Xian International Medical and CSSC Offshore Marine, you can compare the effects of market volatilities on Xian International and CSSC Offshore 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 Xian International with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and CSSC Offshore.
Diversification Opportunities for Xian International and CSSC Offshore
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xian and CSSC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and Xian International 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 Xian International Medical are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Xian International i.e., Xian International and CSSC Offshore go up and down completely randomly.
Pair Corralation between Xian International and CSSC Offshore
Assuming the 90 days trading horizon Xian International Medical is expected to generate 1.96 times more return on investment than CSSC Offshore. However, Xian International is 1.96 times more volatile than CSSC Offshore Marine. It trades about 0.1 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.07 per unit of risk. If you would invest 530.00 in Xian International Medical on August 25, 2024 and sell it today you would earn a total of 37.00 from holding Xian International Medical or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. CSSC Offshore Marine
Performance |
| Timeline |
| Xian International |
| CSSC Offshore Marine |
Xian International and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and CSSC Offshore
The main advantage of trading using opposite Xian International and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| Xian International vs. Kweichow Moutai Co | Xian International vs. Contemporary Amperex Technology | Xian International vs. G bits Network Technology | Xian International vs. Beijing Roborock Technology |
| CSSC Offshore vs. Winner Medical Co | CSSC Offshore vs. Xian International Medical | CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Zhonghong Pulin Medical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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