Correlation Between CSSC Offshore and China Construction
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By analyzing existing cross correlation between CSSC Offshore Marine and China Construction Bank, you can compare the effects of market volatilities on CSSC Offshore and China Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and China Construction.
Diversification Opportunities for CSSC Offshore and China Construction
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and China Construction go up and down completely randomly.
Pair Corralation between CSSC Offshore and China Construction
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the China Construction. In addition to that, CSSC Offshore is 1.73 times more volatile than China Construction Bank. It trades about -0.15 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.28 per unit of volatility. If you would invest 785.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 46.00 from holding China Construction Bank or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. China Construction Bank
Performance |
| Timeline |
| CSSC Offshore Marine |
| China Construction Bank |
CSSC Offshore and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and China Construction
The main advantage of trading using opposite CSSC Offshore and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, China Construction 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 Construction will offset losses from the drop in China Construction's long position.| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. Agricultural Bank of | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China |
| China Construction vs. Tongyu Communication | China Construction vs. Zhongtong Guomai Communication | China Construction vs. Changchun Faway Automobile | China Construction vs. Allwin Telecommunication 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 Valuation module to check real value of public entities based on technical and fundamental data.
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