Correlation Between Guangxi Wuzhou and CSSC Offshore
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and CSSC Offshore Marine, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and CSSC Offshore.
Diversification Opportunities for Guangxi Wuzhou and CSSC Offshore
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and CSSC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and CSSC Offshore go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and CSSC Offshore
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.99 times more return on investment than CSSC Offshore. However, Guangxi Wuzhou Communications is 1.01 times less risky than CSSC Offshore. It trades about 0.03 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 346.00 in Guangxi Wuzhou Communications on October 29, 2024 and sell it today you would earn a total of 88.00 from holding Guangxi Wuzhou Communications or generate 25.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. CSSC Offshore Marine
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| CSSC Offshore Marine |
Guangxi Wuzhou and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and CSSC Offshore
The main advantage of trading using opposite Guangxi Wuzhou and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Cabio Biotech Wuhan | Guangxi Wuzhou vs. Holitech Technology Co | Guangxi Wuzhou vs. Sharetronic Data Technology | Guangxi Wuzhou vs. Lander Sports Development |
| CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Hubei Geoway Investment | CSSC Offshore vs. Beijing Mainstreets Investment | CSSC Offshore vs. Shenzhen Centralcon Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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