Correlation Between CSSC Offshore and Xinjiang Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between CSSC Offshore Marine and Xinjiang Communications Construction, you can compare the effects of market volatilities on CSSC Offshore and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Xinjiang Communications.
Diversification Opportunities for CSSC Offshore and Xinjiang Communications
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Xinjiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Xinjiang Communications go up and down completely randomly.
Pair Corralation between CSSC Offshore and Xinjiang Communications
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.36 times less risky than Xinjiang Communications. The stock trades about -0.02 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,490 in Xinjiang Communications Construction on September 12, 2024 and sell it today you would lose (198.00) from holding Xinjiang Communications Construction or give up 13.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Xinjiang Communications Constr
Performance |
| Timeline |
| CSSC Offshore Marine |
| Xinjiang Communications |
CSSC Offshore and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Xinjiang Communications
The main advantage of trading using opposite CSSC Offshore and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| CSSC Offshore vs. Agricultural Bank of | CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. Bank of China | CSSC Offshore vs. PetroChina Co Ltd |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |