Correlation Between CSSC Offshore and Ningbo MedicalSystem
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By analyzing existing cross correlation between CSSC Offshore Marine and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on CSSC Offshore and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Ningbo MedicalSystem.
Diversification Opportunities for CSSC Offshore and Ningbo MedicalSystem
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Ningbo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between CSSC Offshore and Ningbo MedicalSystem
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.87 times more return on investment than Ningbo MedicalSystem. However, CSSC Offshore Marine is 1.15 times less risky than Ningbo MedicalSystem. It trades about -0.23 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about -0.42 per unit of risk. If you would invest 2,473 in CSSC Offshore Marine on October 12, 2024 and sell it today you would lose (182.00) from holding CSSC Offshore Marine or give up 7.36% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| CSSC Offshore Marine |
| Ningbo MedicalSystem |
CSSC Offshore and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Ningbo MedicalSystem
The main advantage of trading using opposite CSSC Offshore and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| CSSC Offshore vs. Beijing Wantai Biological | CSSC Offshore vs. Suzhou Novoprotein Scientific | CSSC Offshore vs. Aluminum Corp of | CSSC Offshore vs. COL Digital Publishing |
| Ningbo MedicalSystem vs. CSSC Offshore Marine | Ningbo MedicalSystem vs. HanS Laser Tech | Ningbo MedicalSystem vs. Guangdong Transtek Medical | Ningbo MedicalSystem vs. Nanjing Vishee Medical |
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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