Correlation Between CSSC Offshore and CITIC Guoan
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By analyzing existing cross correlation between CSSC Offshore Marine and CITIC Guoan Information, you can compare the effects of market volatilities on CSSC Offshore and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and CITIC Guoan.
Diversification Opportunities for CSSC Offshore and CITIC Guoan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and CITIC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and CITIC Guoan go up and down completely randomly.
Pair Corralation between CSSC Offshore and CITIC Guoan
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 1.72 times less return on investment than CITIC Guoan. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.03 times less risky than CITIC Guoan. It trades about 0.02 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 259.00 in CITIC Guoan Information on September 3, 2024 and sell it today you would earn a total of 92.00 from holding CITIC Guoan Information or generate 35.52% 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. CITIC Guoan Information
Performance |
| Timeline |
| CSSC Offshore Marine |
| CITIC Guoan Information |
CSSC Offshore and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and CITIC Guoan
The main advantage of trading using opposite CSSC Offshore and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan'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 |
| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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