Correlation Between CSSC Offshore and Zhejiang Construction
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By analyzing existing cross correlation between CSSC Offshore Marine and Zhejiang Construction Investment, you can compare the effects of market volatilities on CSSC Offshore and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Zhejiang Construction.
Diversification Opportunities for CSSC Offshore and Zhejiang Construction
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CSSC and Zhejiang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Zhejiang Construction go up and down completely randomly.
Pair Corralation between CSSC Offshore and Zhejiang Construction
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.52 times less return on investment than Zhejiang Construction. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.39 times less risky than Zhejiang Construction. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,009 in Zhejiang Construction Investment on September 14, 2024 and sell it today you would earn a total of 50.00 from holding Zhejiang Construction Investment or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Zhejiang Construction Investme
Performance |
| Timeline |
| CSSC Offshore Marine |
| Zhejiang Construction |
CSSC Offshore and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Zhejiang Construction
The main advantage of trading using opposite CSSC Offshore and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction'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 |
| Zhejiang Construction vs. Sinomach General Machinery | Zhejiang Construction vs. Qijing Machinery | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Panda Financial Holding |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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