Correlation Between CSSC Offshore and State Grid
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By analyzing existing cross correlation between CSSC Offshore Marine and State Grid InformationCommunication, you can compare the effects of market volatilities on CSSC Offshore and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and State Grid.
Diversification Opportunities for CSSC Offshore and State Grid
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and State is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and State Grid go up and down completely randomly.
Pair Corralation between CSSC Offshore and State Grid
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.95 times more return on investment than State Grid. However, CSSC Offshore Marine is 1.06 times less risky than State Grid. It trades about -0.26 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.46 per unit of risk. If you would invest 2,449 in CSSC Offshore Marine on October 14, 2024 and sell it today you would lose (198.00) from holding CSSC Offshore Marine or give up 8.08% 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. State Grid InformationCommunic
Performance |
| Timeline |
| CSSC Offshore Marine |
| State Grid Informati |
CSSC Offshore and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and State Grid
The main advantage of trading using opposite CSSC Offshore and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| CSSC Offshore vs. Chengdu Kanghua Biological | CSSC Offshore vs. Beijing Wantai Biological | CSSC Offshore vs. Suzhou Novoprotein Scientific | CSSC Offshore vs. Aluminum Corp of |
| State Grid vs. Shenyang Chemical Industry | State Grid vs. Huasi Agricultural Development | State Grid vs. Dosilicon Co | State Grid vs. Sinomach General Machinery |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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