Correlation Between CSSC Offshore and Jiangyin Jianghua
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By analyzing existing cross correlation between CSSC Offshore Marine and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on CSSC Offshore and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Jiangyin Jianghua.
Diversification Opportunities for CSSC Offshore and Jiangyin Jianghua
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Jiangyin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between CSSC Offshore and Jiangyin Jianghua
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Jiangyin Jianghua. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 2.18 times less risky than Jiangyin Jianghua. The stock trades about -0.18 of its potential returns per unit of risk. The Jiangyin Jianghua Microelectronics is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,561 in Jiangyin Jianghua Microelectronics on August 29, 2024 and sell it today you would earn a total of 388.00 from holding Jiangyin Jianghua Microelectronics or generate 24.86% 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. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| CSSC Offshore Marine |
| Jiangyin Jianghua |
CSSC Offshore and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Jiangyin Jianghua
The main advantage of trading using opposite CSSC Offshore and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua'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 |
| Jiangyin Jianghua vs. Ningbo Tip Rubber | Jiangyin Jianghua vs. Zhongtong Guomai Communication | Jiangyin Jianghua vs. Xinke Material | Jiangyin Jianghua vs. Malion New Materials |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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