Correlation Between CSSC Offshore and Shenwu Energy
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By analyzing existing cross correlation between CSSC Offshore Marine and Shenwu Energy Saving, you can compare the effects of market volatilities on CSSC Offshore and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Shenwu Energy.
Diversification Opportunities for CSSC Offshore and Shenwu Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Shenwu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Shenwu Energy go up and down completely randomly.
Pair Corralation between CSSC Offshore and Shenwu Energy
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.92 times more return on investment than Shenwu Energy. However, CSSC Offshore Marine is 1.09 times less risky than Shenwu Energy. It trades about -0.09 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.19 per unit of risk. If you would invest 2,545 in CSSC Offshore Marine on September 3, 2024 and sell it today you would lose (97.00) from holding CSSC Offshore Marine or give up 3.81% 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. Shenwu Energy Saving
Performance |
| Timeline |
| CSSC Offshore Marine |
| Shenwu Energy Saving |
CSSC Offshore and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Shenwu Energy
The main advantage of trading using opposite CSSC Offshore and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| CSSC Offshore vs. Shandong Mining Machinery | CSSC Offshore vs. Shengda Mining Co | CSSC Offshore vs. Bangyan Technology Co | CSSC Offshore vs. Hainan Mining Co |
| Shenwu Energy vs. Shanghai Action Education | Shenwu Energy vs. Offcn Education Technology | Shenwu Energy vs. Hubeiyichang Transportation Group | Shenwu Energy vs. Shanghai Broadband 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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