Correlation Between CSSC Offshore and ChengDu Hi
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By analyzing existing cross correlation between CSSC Offshore Marine and ChengDu Hi Tech Development, you can compare the effects of market volatilities on CSSC Offshore and ChengDu Hi 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 ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and ChengDu Hi.
Diversification Opportunities for CSSC Offshore and ChengDu Hi
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and ChengDu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech 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 ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and ChengDu Hi go up and down completely randomly.
Pair Corralation between CSSC Offshore and ChengDu Hi
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the ChengDu Hi. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.73 times less risky than ChengDu Hi. The stock trades about -0.02 of its potential returns per unit of risk. The ChengDu Hi Tech Development is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,672 in ChengDu Hi Tech Development on August 29, 2024 and sell it today you would earn a total of 1,107 from holding ChengDu Hi Tech Development or generate 23.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| CSSC Offshore Marine |
| ChengDu Hi Tech |
CSSC Offshore and ChengDu Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and ChengDu Hi
The main advantage of trading using opposite CSSC Offshore and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.| CSSC Offshore vs. Tieling Newcity Investment | CSSC Offshore vs. Hengdian Entertainment Co | CSSC Offshore vs. Inly Media Co | CSSC Offshore vs. Shanghai Xinhua Media |
| ChengDu Hi vs. Changchun Faway Automobile | ChengDu Hi vs. Chongqing Changan Automobile | ChengDu Hi vs. Anhui Jianghuai Automobile | ChengDu Hi vs. Dongfeng Automobile 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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