Correlation Between Shandong Iron and CSSC Offshore
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By analyzing existing cross correlation between Shandong Iron and and CSSC Offshore Marine, you can compare the effects of market volatilities on Shandong Iron 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 Shandong Iron with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and CSSC Offshore.
Diversification Opportunities for Shandong Iron and CSSC Offshore
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and CSSC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and 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 Shandong Iron 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 Shandong Iron and 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 Shandong Iron i.e., Shandong Iron and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shandong Iron and CSSC Offshore
Assuming the 90 days trading horizon Shandong Iron and is expected to generate 0.9 times more return on investment than CSSC Offshore. However, Shandong Iron and is 1.11 times less risky than CSSC Offshore. It trades about 0.01 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 136.00 in Shandong Iron and on October 16, 2024 and sell it today you would lose (3.00) from holding Shandong Iron and or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Iron and vs. CSSC Offshore Marine
Performance |
| Timeline |
| Shandong Iron |
| CSSC Offshore Marine |
Shandong Iron and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and CSSC Offshore
The main advantage of trading using opposite Shandong Iron and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron 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.| Shandong Iron vs. CIMC Vehicles Co | Shandong Iron vs. Changchun Engley Automobile | Shandong Iron vs. Shenzhen Centralcon Investment | Shandong Iron vs. Shanghai CEO Environmental |
| CSSC Offshore vs. Shenyang Blue Silver | CSSC Offshore vs. Western Mining Co | CSSC Offshore vs. Guangdong Liantai Environmental | CSSC Offshore vs. Shandong Iron and |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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