Correlation Between Hua Xia and CSSC Offshore
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By analyzing existing cross correlation between Hua Xia Bank and CSSC Offshore Marine, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and CSSC Offshore.
Diversification Opportunities for Hua Xia and CSSC Offshore
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hua and CSSC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank 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 Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and CSSC Offshore go up and down completely randomly.
Pair Corralation between Hua Xia and CSSC Offshore
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 1.06 times more return on investment than CSSC Offshore. However, Hua Xia is 1.06 times more volatile than CSSC Offshore Marine. It trades about 0.24 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.15 per unit of risk. If you would invest 708.00 in Hua Xia Bank on September 13, 2024 and sell it today you would earn a total of 68.00 from holding Hua Xia Bank or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. CSSC Offshore Marine
Performance |
| Timeline |
| Hua Xia Bank |
| CSSC Offshore Marine |
Hua Xia and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and CSSC Offshore
The main advantage of trading using opposite Hua Xia and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Dymatic Chemicals | Hua Xia vs. Bomesc Offshore Engineering | Hua Xia vs. North Huajin Chemical | Hua Xia vs. Changjiang Publishing Media |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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