Correlation Between CSSC Offshore and Shenzhen Centralcon
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By analyzing existing cross correlation between CSSC Offshore Marine and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on CSSC Offshore and Shenzhen Centralcon 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 CSSC Offshore with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Shenzhen Centralcon.
Diversification Opportunities for CSSC Offshore and Shenzhen Centralcon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and Shenzhen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and CSSC Offshore 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 CSSC Offshore Marine are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between CSSC Offshore and Shenzhen Centralcon
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.19 times less return on investment than Shenzhen Centralcon. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.7 times less risky than Shenzhen Centralcon. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 608.00 in Shenzhen Centralcon Investment on September 14, 2024 and sell it today you would lose (21.00) from holding Shenzhen Centralcon Investment or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| CSSC Offshore Marine |
| Shenzhen Centralcon |
CSSC Offshore and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Shenzhen Centralcon
The main advantage of trading using opposite CSSC Offshore and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. Agricultural Bank of | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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