Correlation Between CSSC Offshore and Yingde Greatchem
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By analyzing existing cross correlation between CSSC Offshore Marine and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on CSSC Offshore and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Yingde Greatchem.
Diversification Opportunities for CSSC Offshore and Yingde Greatchem
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSSC and Yingde is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Yingde Greatchem go up and down completely randomly.
Pair Corralation between CSSC Offshore and Yingde Greatchem
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.67 times more return on investment than Yingde Greatchem. However, CSSC Offshore Marine is 1.49 times less risky than Yingde Greatchem. It trades about -0.07 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.1 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| CSSC Offshore Marine |
| Yingde Greatchem Che |
CSSC Offshore and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Yingde Greatchem
The main advantage of trading using opposite CSSC Offshore and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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