Correlation Between CSSC Offshore and Xiandai Investment
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By analyzing existing cross correlation between CSSC Offshore Marine and Xiandai Investment Co, you can compare the effects of market volatilities on CSSC Offshore and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Xiandai Investment.
Diversification Opportunities for CSSC Offshore and Xiandai Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and Xiandai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Xiandai Investment go up and down completely randomly.
Pair Corralation between CSSC Offshore and Xiandai Investment
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Xiandai Investment. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.47 times less risky than Xiandai Investment. The stock trades about -0.11 of its potential returns per unit of risk. The Xiandai Investment Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 414.00 in Xiandai Investment Co on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Xiandai Investment Co
Performance |
| Timeline |
| CSSC Offshore Marine |
| Xiandai Investment |
CSSC Offshore and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Xiandai Investment
The main advantage of trading using opposite CSSC Offshore and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China | CSSC Offshore vs. Agricultural Bank of |
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 Stocks Directory module to find actively traded stocks across global markets.
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