Correlation Between Shenzhen and CSSC Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen AV Display Co and CSSC Offshore Marine, you can compare the effects of market volatilities on Shenzhen 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 Shenzhen with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and CSSC Offshore.
Diversification Opportunities for Shenzhen and CSSC Offshore
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and CSSC is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co 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 Shenzhen 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 Shenzhen AV Display Co 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 Shenzhen i.e., Shenzhen and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shenzhen and CSSC Offshore
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the CSSC Offshore. In addition to that, Shenzhen is 2.19 times more volatile than CSSC Offshore Marine. It trades about -0.14 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.14 per unit of volatility. If you would invest 2,430 in CSSC Offshore Marine on October 29, 2024 and sell it today you would lose (99.00) from holding CSSC Offshore Marine or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. CSSC Offshore Marine
Performance |
| Timeline |
| Shenzhen AV Display |
| CSSC Offshore Marine |
Shenzhen and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and CSSC Offshore
The main advantage of trading using opposite Shenzhen and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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.| Shenzhen vs. Railway Signal Communication | Shenzhen vs. Duzhe Publishing Media | Shenzhen vs. SSAW Hotels Resorts | Shenzhen vs. China Publishing Media |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |