Correlation Between Tianjin LVYIN and CSSC Offshore
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By analyzing existing cross correlation between Tianjin LVYIN Landscape and CSSC Offshore Marine, you can compare the effects of market volatilities on Tianjin LVYIN 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 Tianjin LVYIN with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin LVYIN and CSSC Offshore.
Diversification Opportunities for Tianjin LVYIN and CSSC Offshore
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tianjin and CSSC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin LVYIN Landscape 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 Tianjin LVYIN 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 Tianjin LVYIN Landscape 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 Tianjin LVYIN i.e., Tianjin LVYIN and CSSC Offshore go up and down completely randomly.
Pair Corralation between Tianjin LVYIN and CSSC Offshore
Assuming the 90 days trading horizon Tianjin LVYIN Landscape is expected to under-perform the CSSC Offshore. In addition to that, Tianjin LVYIN is 2.5 times more volatile than CSSC Offshore Marine. It trades about -0.26 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.26 per unit of volatility. If you would invest 2,449 in CSSC Offshore Marine on October 14, 2024 and sell it today you would lose (198.00) from holding CSSC Offshore Marine or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin LVYIN Landscape vs. CSSC Offshore Marine
Performance |
| Timeline |
| Tianjin LVYIN Landscape |
| CSSC Offshore Marine |
Tianjin LVYIN and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin LVYIN and CSSC Offshore
The main advantage of trading using opposite Tianjin LVYIN and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin LVYIN 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.| Tianjin LVYIN vs. CSSC Offshore Marine | Tianjin LVYIN vs. Guangxi Wuzhou Communications | Tianjin LVYIN vs. State Grid InformationCommunication | Tianjin LVYIN vs. Bomesc Offshore Engineering |
| CSSC Offshore vs. Chengdu Kanghua Biological | CSSC Offshore vs. Beijing Wantai Biological | CSSC Offshore vs. Suzhou Novoprotein Scientific | CSSC Offshore vs. Aluminum Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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