Correlation Between CSSC Offshore and Super Dragon
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By analyzing existing cross correlation between CSSC Offshore Marine and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on CSSC Offshore and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Super Dragon.
Diversification Opportunities for CSSC Offshore and Super Dragon
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Super is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Super Dragon go up and down completely randomly.
Pair Corralation between CSSC Offshore and Super Dragon
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.67 times more return on investment than Super Dragon. However, CSSC Offshore Marine is 1.49 times less risky than Super Dragon. It trades about 0.02 of its potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.01 per unit of risk. If you would invest 2,157 in CSSC Offshore Marine on September 3, 2024 and sell it today you would earn a total of 291.00 from holding CSSC Offshore Marine or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| CSSC Offshore Marine |
| Super Dragon Enginee |
CSSC Offshore and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Super Dragon
The main advantage of trading using opposite CSSC Offshore and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| CSSC Offshore vs. Shandong Mining Machinery | CSSC Offshore vs. Shengda Mining Co | CSSC Offshore vs. Bangyan Technology Co | CSSC Offshore vs. Hainan Mining Co |
| Super Dragon vs. Cultural Investment Holdings | Super Dragon vs. Gome Telecom Equipment | Super Dragon vs. Bus Online Co | Super Dragon vs. Holitech Technology Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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