Correlation Between CSSC Offshore and Bohai Leasing
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By analyzing existing cross correlation between CSSC Offshore Marine and Bohai Leasing Co, you can compare the effects of market volatilities on CSSC Offshore and Bohai Leasing 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 Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Bohai Leasing.
Diversification Opportunities for CSSC Offshore and Bohai Leasing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Bohai is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing 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 Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Bohai Leasing go up and down completely randomly.
Pair Corralation between CSSC Offshore and Bohai Leasing
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.69 times more return on investment than Bohai Leasing. However, CSSC Offshore Marine is 1.44 times less risky than Bohai Leasing. It trades about -0.07 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.16 per unit of risk. If you would invest 2,448 in CSSC Offshore Marine on October 30, 2024 and sell it today you would lose (111.00) from holding CSSC Offshore Marine or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Bohai Leasing Co
Performance |
| Timeline |
| CSSC Offshore Marine |
| Bohai Leasing |
CSSC Offshore and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Bohai Leasing
The main advantage of trading using opposite CSSC Offshore and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
| Bohai Leasing vs. Postal Savings Bank | Bohai Leasing vs. Guosheng Financial Holding | Bohai Leasing vs. Advanced Technology Materials | Bohai Leasing vs. GRIPM Advanced Materials |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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