Correlation Between Yingde Greatchem and CSSC Offshore
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and CSSC Offshore Marine, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and CSSC Offshore.
Diversification Opportunities for Yingde Greatchem and CSSC Offshore
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yingde and CSSC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and CSSC Offshore go up and down completely randomly.
Pair Corralation between Yingde Greatchem and CSSC Offshore
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the CSSC Offshore. In addition to that, Yingde Greatchem is 1.49 times more volatile than CSSC Offshore Marine. It trades about -0.1 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.07 per unit of volatility. If you would invest 2,448 in CSSC Offshore Marine on October 30, 2024 and sell it today you would lose (111.00) from holding CSSC Offshore Marine or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. CSSC Offshore Marine
Performance |
| Timeline |
| Yingde Greatchem Che |
| CSSC Offshore Marine |
Yingde Greatchem and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and CSSC Offshore
The main advantage of trading using opposite Yingde Greatchem and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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