Correlation Between CSSC Offshore and Hunan Investment
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By analyzing existing cross correlation between CSSC Offshore Marine and Hunan Investment Group, you can compare the effects of market volatilities on CSSC Offshore and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Hunan Investment.
Diversification Opportunities for CSSC Offshore and Hunan Investment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CSSC and Hunan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Hunan Investment go up and down completely randomly.
Pair Corralation between CSSC Offshore and Hunan Investment
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.81 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.26 times less risky than Hunan Investment. It trades about 0.01 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Hunan Investment Group on September 14, 2024 and sell it today you would earn a total of 54.00 from holding Hunan Investment Group or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Hunan Investment Group
Performance |
| Timeline |
| CSSC Offshore Marine |
| Hunan Investment |
CSSC Offshore and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Hunan Investment
The main advantage of trading using opposite CSSC Offshore and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment'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 |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
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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