Correlation Between North Copper and CSSC Offshore
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By analyzing existing cross correlation between North Copper Shanxi and CSSC Offshore Marine, you can compare the effects of market volatilities on North Copper 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 North Copper with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and CSSC Offshore.
Diversification Opportunities for North Copper and CSSC Offshore
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between North and CSSC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi 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 North Copper 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 North Copper Shanxi 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 North Copper i.e., North Copper and CSSC Offshore go up and down completely randomly.
Pair Corralation between North Copper and CSSC Offshore
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 2.22 times more return on investment than CSSC Offshore. However, North Copper is 2.22 times more volatile than CSSC Offshore Marine. It trades about 0.06 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 857.00 in North Copper Shanxi on October 30, 2024 and sell it today you would earn a total of 49.00 from holding North Copper Shanxi or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. CSSC Offshore Marine
Performance |
| Timeline |
| North Copper Shanxi |
| CSSC Offshore Marine |
North Copper and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and CSSC Offshore
The main advantage of trading using opposite North Copper and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper 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.| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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