Correlation Between CSSC Offshore and Dongfeng Automobile
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By analyzing existing cross correlation between CSSC Offshore Marine and Dongfeng Automobile Co, you can compare the effects of market volatilities on CSSC Offshore and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Dongfeng Automobile.
Diversification Opportunities for CSSC Offshore and Dongfeng Automobile
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CSSC and Dongfeng is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between CSSC Offshore and Dongfeng Automobile
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.33 times less return on investment than Dongfeng Automobile. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.25 times less risky than Dongfeng Automobile. It trades about 0.01 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 601.00 in Dongfeng Automobile Co on October 29, 2024 and sell it today you would earn a total of 87.00 from holding Dongfeng Automobile Co or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Dongfeng Automobile Co
Performance |
| Timeline |
| CSSC Offshore Marine |
| Dongfeng Automobile |
CSSC Offshore and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Dongfeng Automobile
The main advantage of trading using opposite CSSC Offshore and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Hubei Geoway Investment | CSSC Offshore vs. Beijing Mainstreets Investment | CSSC Offshore vs. Shenzhen Centralcon Investment |
| Dongfeng Automobile vs. Guangzhou Jinyi Media | Dongfeng Automobile vs. Xinxiang Chemical Fiber | Dongfeng Automobile vs. Omnijoi Media Corp | Dongfeng Automobile vs. Liaoning Dingjide Petrochemical |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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