Correlation Between Tieling Newcity and CSSC Offshore
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By analyzing existing cross correlation between Tieling Newcity Investment and CSSC Offshore Marine, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and CSSC Offshore.
Diversification Opportunities for Tieling Newcity and CSSC Offshore
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tieling and CSSC is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment 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 Tieling Newcity 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 Tieling Newcity Investment 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 Tieling Newcity i.e., Tieling Newcity and CSSC Offshore go up and down completely randomly.
Pair Corralation between Tieling Newcity and CSSC Offshore
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.04 times more return on investment than CSSC Offshore. However, Tieling Newcity is 1.04 times more volatile than CSSC Offshore Marine. It trades about 0.05 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.03 per unit of risk. If you would invest 238.00 in Tieling Newcity Investment on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Tieling Newcity Investment or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. CSSC Offshore Marine
Performance |
| Timeline |
| Tieling Newcity Inve |
| CSSC Offshore Marine |
Tieling Newcity and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and CSSC Offshore
The main advantage of trading using opposite Tieling Newcity and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.| Tieling Newcity vs. PetroChina Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. CNOOC Limited | Tieling Newcity vs. Ping An Insurance |
| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China | CSSC Offshore vs. Agricultural Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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