Correlation Between CSSC Offshore and China Railway
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By analyzing existing cross correlation between CSSC Offshore Marine and China Railway Group, you can compare the effects of market volatilities on CSSC Offshore and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and China Railway.
Diversification Opportunities for CSSC Offshore and China Railway
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and China is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and China Railway Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Group 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Group has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and China Railway go up and down completely randomly.
Pair Corralation between CSSC Offshore and China Railway
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the China Railway. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.01 times less risky than China Railway. The stock trades about -0.04 of its potential returns per unit of risk. The China Railway Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 652.00 in China Railway Group on September 26, 2024 and sell it today you would earn a total of 1.00 from holding China Railway Group or generate 0.15% 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. China Railway Group
Performance |
| Timeline |
| CSSC Offshore Marine |
| China Railway Group |
CSSC Offshore and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and China Railway
The main advantage of trading using opposite CSSC Offshore and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| CSSC Offshore vs. New China Life | CSSC Offshore vs. Ming Yang Smart | CSSC Offshore vs. 159681 | CSSC Offshore vs. 159005 |
| China Railway vs. Fuzhou Rockchip Electronics | China Railway vs. Tongyu Communication | China Railway vs. Wintao Communications Co | China Railway vs. Unigroup Guoxin Microelectronics |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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