Correlation Between CSSC Offshore and Jiangxi Hengda
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By analyzing existing cross correlation between CSSC Offshore Marine and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on CSSC Offshore and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Jiangxi Hengda.
Diversification Opportunities for CSSC Offshore and Jiangxi Hengda
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and Jiangxi is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between CSSC Offshore and Jiangxi Hengda
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.36 times more return on investment than Jiangxi Hengda. However, CSSC Offshore Marine is 2.77 times less risky than Jiangxi Hengda. It trades about -0.07 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.09 per unit of risk. If you would invest 2,448 in CSSC Offshore Marine on October 30, 2024 and sell it today you would lose (111.00) from holding CSSC Offshore Marine or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| CSSC Offshore Marine |
| Jiangxi Hengda Hi |
CSSC Offshore and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Jiangxi Hengda
The main advantage of trading using opposite CSSC Offshore and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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