Correlation Between Chengdu Kanghua and CSSC Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and CSSC Offshore Marine, you can compare the effects of market volatilities on Chengdu Kanghua 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 Chengdu Kanghua with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and CSSC Offshore.
Diversification Opportunities for Chengdu Kanghua and CSSC Offshore
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and CSSC is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological 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 Chengdu Kanghua 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 Chengdu Kanghua Biological 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 Chengdu Kanghua i.e., Chengdu Kanghua and CSSC Offshore go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and CSSC Offshore
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the CSSC Offshore. In addition to that, Chengdu Kanghua is 1.3 times more volatile than CSSC Offshore Marine. It trades about -0.28 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.22 per unit of volatility. If you would invest 2,471 in CSSC Offshore Marine on October 11, 2024 and sell it today you would lose (174.00) from holding CSSC Offshore Marine or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. CSSC Offshore Marine
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| CSSC Offshore Marine |
Chengdu Kanghua and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and CSSC Offshore
The main advantage of trading using opposite Chengdu Kanghua and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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.| Chengdu Kanghua vs. Sportsoul Co Ltd | Chengdu Kanghua vs. Shenwu Energy Saving | Chengdu Kanghua vs. Threes Company Media | Chengdu Kanghua vs. Panda Financial Holding |
| CSSC Offshore vs. Beijing Baolande Software | CSSC Offshore vs. TianJin 712 Communication | CSSC Offshore vs. Guangdong Shenglu Telecommunication | CSSC Offshore vs. Digiwin Software Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |