Correlation Between Jiangsu Jinling and CSSC Offshore
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By analyzing existing cross correlation between Jiangsu Jinling Sports and CSSC Offshore Marine, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and CSSC Offshore.
Diversification Opportunities for Jiangsu Jinling and CSSC Offshore
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and CSSC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and CSSC Offshore go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and CSSC Offshore
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.75 times more return on investment than CSSC Offshore. However, Jiangsu Jinling is 1.75 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 -0.14 per unit of risk. If you would invest 1,288 in Jiangsu Jinling Sports on October 29, 2024 and sell it today you would earn a total of 2.00 from holding Jiangsu Jinling Sports or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. CSSC Offshore Marine
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| CSSC Offshore Marine |
Jiangsu Jinling and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and CSSC Offshore
The main advantage of trading using opposite Jiangsu Jinling and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. Lontium Semiconductor Corp | Jiangsu Jinling vs. Hubei Tech Semiconductors | Jiangsu Jinling vs. Will Semiconductor Co | Jiangsu Jinling vs. Vats Liquor Chain |
| CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Hubei Geoway Investment | CSSC Offshore vs. Beijing Mainstreets Investment | CSSC Offshore vs. Shenzhen Centralcon 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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