Correlation Between Nanjing Putian and CSSC Offshore
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and CSSC Offshore Marine, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and CSSC Offshore.
Diversification Opportunities for Nanjing Putian and CSSC Offshore
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and CSSC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati 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 Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and CSSC Offshore go up and down completely randomly.
Pair Corralation between Nanjing Putian and CSSC Offshore
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.86 times more return on investment than CSSC Offshore. However, Nanjing Putian is 2.86 times more volatile than CSSC Offshore Marine. It trades about 0.0 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.15 per unit of risk. If you would invest 445.00 in Nanjing Putian Telecommunications on November 9, 2024 and sell it today you would lose (28.00) from holding Nanjing Putian Telecommunications or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. CSSC Offshore Marine
Performance |
| Timeline |
| Nanjing Putian Telec |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| CSSC Offshore Marine |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nanjing Putian and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and CSSC Offshore
The main advantage of trading using opposite Nanjing Putian and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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 Nanjing Putian Telecommunications 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.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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