Correlation Between CSSC Offshore and Inner Mongolia
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By analyzing existing cross correlation between CSSC Offshore Marine and Inner Mongolia Yuan, you can compare the effects of market volatilities on CSSC Offshore and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Inner Mongolia.
Diversification Opportunities for CSSC Offshore and Inner Mongolia
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSSC and Inner is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Inner Mongolia Yuan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yuan 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yuan has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Inner Mongolia go up and down completely randomly.
Pair Corralation between CSSC Offshore and Inner Mongolia
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Inner Mongolia. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.18 times less risky than Inner Mongolia. The stock trades about -0.17 of its potential returns per unit of risk. The Inner Mongolia Yuan is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Inner Mongolia Yuan on September 13, 2024 and sell it today you would lose (17.00) from holding Inner Mongolia Yuan or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Inner Mongolia Yuan
Performance |
| Timeline |
| CSSC Offshore Marine |
| Inner Mongolia Yuan |
CSSC Offshore and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Inner Mongolia
The main advantage of trading using opposite CSSC Offshore and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia'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 |
| Inner Mongolia vs. Zijin Mining Group | Inner Mongolia vs. Wanhua Chemical Group | Inner Mongolia vs. Baoshan Iron Steel | Inner Mongolia vs. Shandong Gold Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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