Correlation Between CSSC Offshore and Eastern Communications
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By analyzing existing cross correlation between CSSC Offshore Marine and Eastern Communications Co, you can compare the effects of market volatilities on CSSC Offshore and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Eastern Communications.
Diversification Opportunities for CSSC Offshore and Eastern Communications
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSSC and Eastern is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Eastern Communications go up and down completely randomly.
Pair Corralation between CSSC Offshore and Eastern Communications
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 1.06 times more return on investment than Eastern Communications. However, CSSC Offshore is 1.06 times more volatile than Eastern Communications Co. It trades about 0.01 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.0 per unit of risk. If you would invest 2,499 in CSSC Offshore Marine on November 1, 2024 and sell it today you would lose (162.00) from holding CSSC Offshore Marine or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Eastern Communications Co
Performance |
| Timeline |
| CSSC Offshore Marine |
| Eastern Communications |
CSSC Offshore and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Eastern Communications
The main advantage of trading using opposite CSSC Offshore and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| CSSC Offshore vs. Guangdong Jingyi Metal | CSSC Offshore vs. Xinjiang Communications Construction | CSSC Offshore vs. Tongyu Communication | CSSC Offshore vs. Nanjing Putian Telecommunications |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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