Correlation Between Chengtun Mining and CSSC Offshore
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By analyzing existing cross correlation between Chengtun Mining Group and CSSC Offshore Marine, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and CSSC Offshore.
Diversification Opportunities for Chengtun Mining and CSSC Offshore
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and CSSC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and CSSC Offshore go up and down completely randomly.
Pair Corralation between Chengtun Mining and CSSC Offshore
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.11 times more return on investment than CSSC Offshore. However, Chengtun Mining is 1.11 times more volatile than CSSC Offshore Marine. It trades about -0.09 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.23 per unit of risk. If you would invest 512.00 in Chengtun Mining Group on September 12, 2024 and sell it today you would lose (21.00) from holding Chengtun Mining Group or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. CSSC Offshore Marine
Performance |
| Timeline |
| Chengtun Mining Group |
| CSSC Offshore Marine |
Chengtun Mining and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and CSSC Offshore
The main advantage of trading using opposite Chengtun Mining and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co |
| CSSC Offshore vs. Agricultural Bank of | CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. Bank of China | CSSC Offshore vs. PetroChina Co Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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