Correlation Between Caihong Display and CSSC Offshore
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By analyzing existing cross correlation between Caihong Display Devices and CSSC Offshore Marine, you can compare the effects of market volatilities on Caihong Display and CSSC Offshore 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 Caihong Display with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and CSSC Offshore.
Diversification Opportunities for Caihong Display and CSSC Offshore
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caihong and CSSC is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and Caihong Display 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 Caihong Display Devices are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Caihong Display i.e., Caihong Display and CSSC Offshore go up and down completely randomly.
Pair Corralation between Caihong Display and CSSC Offshore
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.99 times more return on investment than CSSC Offshore. However, Caihong Display is 1.99 times more volatile than CSSC Offshore Marine. It trades about 0.19 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.07 per unit of risk. If you would invest 697.00 in Caihong Display Devices on October 30, 2024 and sell it today you would earn a total of 151.00 from holding Caihong Display Devices or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. CSSC Offshore Marine
Performance |
| Timeline |
| Caihong Display Devices |
| CSSC Offshore Marine |
Caihong Display and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and CSSC Offshore
The main advantage of trading using opposite Caihong Display and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| Caihong Display vs. Anshan Senyuan Road | Caihong Display vs. Longjian Road Bridge | Caihong Display vs. Threes Company Media | Caihong Display vs. Shanghai Xinhua Media |
| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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