Correlation Between CSSC Offshore and Aba Chemicals
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By analyzing existing cross correlation between CSSC Offshore Marine and Aba Chemicals Corp, you can compare the effects of market volatilities on CSSC Offshore and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Aba Chemicals.
Diversification Opportunities for CSSC Offshore and Aba Chemicals
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CSSC and Aba is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Aba Chemicals go up and down completely randomly.
Pair Corralation between CSSC Offshore and Aba Chemicals
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.65 times more return on investment than Aba Chemicals. However, CSSC Offshore Marine is 1.54 times less risky than Aba Chemicals. It trades about -0.07 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.29 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 Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Aba Chemicals Corp
Performance |
| Timeline |
| CSSC Offshore Marine |
| Aba Chemicals Corp |
CSSC Offshore and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Aba Chemicals
The main advantage of trading using opposite CSSC Offshore and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' 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 |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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