Correlation Between China Asset and CSSC Offshore
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By analyzing existing cross correlation between China Asset Management and CSSC Offshore Marine, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and CSSC Offshore.
Diversification Opportunities for China Asset and CSSC Offshore
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and CSSC is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and CSSC Offshore go up and down completely randomly.
Pair Corralation between China Asset and CSSC Offshore
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.42 times more return on investment than CSSC Offshore. However, China Asset Management is 2.4 times less risky than CSSC Offshore. It trades about 0.15 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.01 per unit of risk. If you would invest 242.00 in China Asset Management on September 14, 2024 and sell it today you would earn a total of 99.00 from holding China Asset Management or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. CSSC Offshore Marine
Performance |
| Timeline |
| China Asset Management |
| CSSC Offshore Marine |
China Asset and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and CSSC Offshore
The main advantage of trading using opposite China Asset and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. Agricultural Bank of | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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