Correlation Between Guangzhou Tinci and CSSC Offshore
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By analyzing existing cross correlation between Guangzhou Tinci Materials and CSSC Offshore Marine, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and CSSC Offshore.
Diversification Opportunities for Guangzhou Tinci and CSSC Offshore
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and CSSC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and CSSC Offshore go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and CSSC Offshore
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.57 times more return on investment than CSSC Offshore. However, Guangzhou Tinci is 1.57 times more volatile than CSSC Offshore Marine. It trades about 0.02 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.02 per unit of risk. If you would invest 2,327 in Guangzhou Tinci Materials on September 2, 2024 and sell it today you would earn a total of 142.00 from holding Guangzhou Tinci Materials or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. CSSC Offshore Marine
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| CSSC Offshore Marine |
Guangzhou Tinci and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and CSSC Offshore
The main advantage of trading using opposite Guangzhou Tinci and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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