Correlation Between CSC Steel and Advance Information
Can any of the company-specific risk be diversified away by investing in both CSC Steel and Advance Information 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 CSC Steel and Advance Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSC Steel Holdings and Advance Information Marketing, you can compare the effects of market volatilities on CSC Steel and Advance Information 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 CSC Steel with a short position of Advance Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSC Steel and Advance Information.
Diversification Opportunities for CSC Steel and Advance Information
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSC and Advance is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CSC Steel Holdings and Advance Information Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Information and CSC Steel 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 CSC Steel Holdings are associated (or correlated) with Advance Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Information has no effect on the direction of CSC Steel i.e., CSC Steel and Advance Information go up and down completely randomly.
Pair Corralation between CSC Steel and Advance Information
Assuming the 90 days trading horizon CSC Steel Holdings is expected to generate 0.23 times more return on investment than Advance Information. However, CSC Steel Holdings is 4.42 times less risky than Advance Information. It trades about 0.02 of its potential returns per unit of risk. Advance Information Marketing is currently generating about -0.02 per unit of risk. If you would invest 113.00 in CSC Steel Holdings on September 2, 2024 and sell it today you would earn a total of 4.00 from holding CSC Steel Holdings or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSC Steel Holdings vs. Advance Information Marketing
Performance |
| Timeline |
| CSC Steel Holdings |
| Advance Information |
CSC Steel and Advance Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSC Steel and Advance Information
The main advantage of trading using opposite CSC Steel and Advance Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSC Steel position performs unexpectedly, Advance Information 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 Advance Information will offset losses from the drop in Advance Information's long position.The idea behind CSC Steel Holdings and Advance Information Marketing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Advance Information vs. ES Ceramics Technology | Advance Information vs. CSC Steel Holdings | Advance Information vs. Awanbiru Technology Bhd | Advance Information vs. Malaysia Steel Works |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |