Correlation Between Shandong Homey and CSSC Offshore
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By analyzing existing cross correlation between Shandong Homey Aquatic and CSSC Offshore Marine, you can compare the effects of market volatilities on Shandong Homey 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 Homey with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and CSSC Offshore.
Diversification Opportunities for Shandong Homey and CSSC Offshore
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and CSSC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Homey 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 Homey Aquatic 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 Homey i.e., Shandong Homey and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shandong Homey and CSSC Offshore
Assuming the 90 days trading horizon Shandong Homey is expected to generate 2.57 times less return on investment than CSSC Offshore. In addition to that, Shandong Homey is 1.27 times more volatile than CSSC Offshore Marine. It trades about 0.01 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.02 per unit of volatility. If you would invest 2,272 in CSSC Offshore Marine on August 25, 2024 and sell it today you would earn a total of 189.00 from holding CSSC Offshore Marine or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. CSSC Offshore Marine
Performance |
| Timeline |
| Shandong Homey Aquatic |
| CSSC Offshore Marine |
Shandong Homey and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and CSSC Offshore
The main advantage of trading using opposite Shandong Homey and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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 Homey vs. China Petroleum Chemical | Shandong Homey vs. PetroChina Co Ltd | Shandong Homey vs. China State Construction | Shandong Homey vs. China Railway Group |
| CSSC Offshore vs. Jiangyin Jianghua Microelectronics | CSSC Offshore vs. Fuzhou Rockchip Electronics | CSSC Offshore vs. Kunshan Guoli Electronic | CSSC Offshore vs. Bomin Electronics Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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