Correlation Between ADRIATIC METALS and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and CSSC Offshore at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ADRIATIC METALS and CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and CSSC Offshore Marine, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and CSSC Offshore.
Diversification Opportunities for ADRIATIC METALS and CSSC Offshore
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ADRIATIC and CSSC is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and CSSC Offshore go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and CSSC Offshore
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to under-perform the CSSC Offshore. In addition to that, ADRIATIC METALS is 1.18 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 0.05 per unit of volatility. If you would invest 125.00 in CSSC Offshore Marine on October 11, 2024 and sell it today you would earn a total of 2.00 from holding CSSC Offshore Marine or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. CSSC Offshore Marine
Performance |
| Timeline |
| ADRIATIC METALS LS |
| CSSC Offshore Marine |
ADRIATIC METALS and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and CSSC Offshore
The main advantage of trading using opposite ADRIATIC METALS and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.| ADRIATIC METALS vs. British American Tobacco | ADRIATIC METALS vs. JAPAN TOBACCO UNSPADR12 | ADRIATIC METALS vs. Nomad Foods | ADRIATIC METALS vs. INDOFOOD AGRI RES |
| CSSC Offshore vs. Jacquet Metal Service | CSSC Offshore vs. Canadian Utilities Limited | CSSC Offshore vs. ADRIATIC METALS LS 013355 | CSSC Offshore vs. United Utilities Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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