Correlation Between Shenyang Blue and CSSC Offshore
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By analyzing existing cross correlation between Shenyang Blue Silver and CSSC Offshore Marine, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and CSSC Offshore.
Diversification Opportunities for Shenyang Blue and CSSC Offshore
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and CSSC is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shenyang Blue and CSSC Offshore
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.24 times more return on investment than CSSC Offshore. However, Shenyang Blue is 2.24 times more volatile than CSSC Offshore Marine. It trades about 0.06 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.01 per unit of risk. If you would invest 1,463 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 733.00 from holding Shenyang Blue Silver or generate 50.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. CSSC Offshore Marine
Performance |
| Timeline |
| Shenyang Blue Silver |
| CSSC Offshore Marine |
Shenyang Blue and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and CSSC Offshore
The main advantage of trading using opposite Shenyang Blue and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Jiangxi Hengda Hi Tech | Shenyang Blue vs. Runjian Communication Co | Shenyang Blue vs. Guangzhou Haige Communications | Shenyang Blue vs. Shantui Construction Machinery |
| CSSC Offshore vs. Shenyang Blue Silver | CSSC Offshore vs. Western Mining Co | CSSC Offshore vs. Guangdong Liantai Environmental | CSSC Offshore vs. Shandong Iron and |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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