Correlation Between Zhonghong Pulin and CSSC Offshore
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By analyzing existing cross correlation between Zhonghong Pulin Medical and CSSC Offshore Marine, you can compare the effects of market volatilities on Zhonghong Pulin 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 Zhonghong Pulin with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and CSSC Offshore.
Diversification Opportunities for Zhonghong Pulin and CSSC Offshore
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhonghong and CSSC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical 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 Zhonghong Pulin 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 Zhonghong Pulin Medical 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 Zhonghong Pulin i.e., Zhonghong Pulin and CSSC Offshore go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and CSSC Offshore
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to generate 2.62 times more return on investment than CSSC Offshore. However, Zhonghong Pulin is 2.62 times more volatile than CSSC Offshore Marine. It trades about 0.13 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.07 per unit of risk. If you would invest 1,270 in Zhonghong Pulin Medical on August 25, 2024 and sell it today you would earn a total of 164.00 from holding Zhonghong Pulin Medical or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. CSSC Offshore Marine
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| CSSC Offshore Marine |
Zhonghong Pulin and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and CSSC Offshore
The main advantage of trading using opposite Zhonghong Pulin and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin 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.| Zhonghong Pulin vs. China State Construction | Zhonghong Pulin vs. Poly Real Estate | Zhonghong Pulin vs. China Vanke Co | Zhonghong Pulin vs. China Merchants Shekou |
| CSSC Offshore vs. Winner Medical Co | CSSC Offshore vs. Xian International Medical | CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Zhonghong Pulin Medical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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