Correlation Between 159005 and CSSC Offshore
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By analyzing existing cross correlation between 159005 and CSSC Offshore Marine, you can compare the effects of market volatilities on 159005 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 159005 with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and CSSC Offshore.
Diversification Opportunities for 159005 and CSSC Offshore
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 159005 and CSSC is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and CSSC Offshore go up and down completely randomly.
Pair Corralation between 159005 and CSSC Offshore
Assuming the 90 days trading horizon 159005 is expected to generate 2.02 times less return on investment than CSSC Offshore. But when comparing it to its historical volatility, 159005 is 54.46 times less risky than CSSC Offshore. It trades about 0.21 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,425 in CSSC Offshore Marine on September 27, 2024 and sell it today you would earn a total of 1.00 from holding CSSC Offshore Marine or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. CSSC Offshore Marine
Performance |
| Timeline |
| 159005 |
| CSSC Offshore Marine |
159005 and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and CSSC Offshore
The main advantage of trading using opposite 159005 and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and CSSC Offshore Marine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CSSC Offshore vs. New China Life | CSSC Offshore vs. Ming Yang Smart | CSSC Offshore vs. 159681 | CSSC Offshore vs. 159005 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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