Correlation Between CSSC Offshore and Shanghai Zhangjiang
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By analyzing existing cross correlation between CSSC Offshore Marine and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on CSSC Offshore and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Shanghai Zhangjiang.
Diversification Opportunities for CSSC Offshore and Shanghai Zhangjiang
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Shanghai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between CSSC Offshore and Shanghai Zhangjiang
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 5.85 times less return on investment than Shanghai Zhangjiang. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.5 times less risky than Shanghai Zhangjiang. It trades about 0.02 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,227 in Shanghai Zhangjiang Hi Tech on August 26, 2024 and sell it today you would earn a total of 1,642 from holding Shanghai Zhangjiang Hi Tech or generate 133.82% 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| CSSC Offshore Marine |
| Shanghai Zhangjiang |
CSSC Offshore and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Shanghai Zhangjiang
The main advantage of trading using opposite CSSC Offshore and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| CSSC Offshore vs. Jiangyin Jianghua Microelectronics | CSSC Offshore vs. Fuzhou Rockchip Electronics | CSSC Offshore vs. Kunshan Guoli Electronic | CSSC Offshore vs. Bomin Electronics Co |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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