Correlation Between CSSC Offshore and Shanghai Ziyan
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By analyzing existing cross correlation between CSSC Offshore Marine and Shanghai Ziyan Foods, you can compare the effects of market volatilities on CSSC Offshore and Shanghai Ziyan 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 Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Shanghai Ziyan.
Diversification Opportunities for CSSC Offshore and Shanghai Ziyan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSSC and Shanghai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between CSSC Offshore and Shanghai Ziyan
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 1.13 times more return on investment than Shanghai Ziyan. However, CSSC Offshore is 1.13 times more volatile than Shanghai Ziyan Foods. It trades about 0.02 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.03 per unit of risk. If you would invest 2,129 in CSSC Offshore Marine on August 28, 2024 and sell it today you would earn a total of 295.00 from holding CSSC Offshore Marine or generate 13.86% 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. Shanghai Ziyan Foods
Performance |
| Timeline |
| CSSC Offshore Marine |
| Shanghai Ziyan Foods |
CSSC Offshore and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Shanghai Ziyan
The main advantage of trading using opposite CSSC Offshore and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| CSSC Offshore vs. Biwin Storage Technology | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank |
| Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. Agricultural Bank of | Shanghai Ziyan vs. China Construction Bank | Shanghai Ziyan vs. Bank of China |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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