Correlation Between CSSC Offshore and Henan Shuanghui
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By analyzing existing cross correlation between CSSC Offshore Marine and Henan Shuanghui Investment, you can compare the effects of market volatilities on CSSC Offshore and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Henan Shuanghui.
Diversification Opportunities for CSSC Offshore and Henan Shuanghui
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Henan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Henan Shuanghui go up and down completely randomly.
Pair Corralation between CSSC Offshore and Henan Shuanghui
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 1.48 times less return on investment than Henan Shuanghui. In addition to that, CSSC Offshore is 1.53 times more volatile than Henan Shuanghui Investment. It trades about 0.01 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.03 per unit of volatility. If you would invest 2,413 in Henan Shuanghui Investment on September 14, 2024 and sell it today you would earn a total of 186.00 from holding Henan Shuanghui Investment or generate 7.71% 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. Henan Shuanghui Investment
Performance |
| Timeline |
| CSSC Offshore Marine |
| Henan Shuanghui Inve |
CSSC Offshore and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Henan Shuanghui
The main advantage of trading using opposite CSSC Offshore and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui'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 |
| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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