Correlation Between Shanghai Xinhua and CSSC Offshore
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By analyzing existing cross correlation between Shanghai Xinhua Media and CSSC Offshore Marine, you can compare the effects of market volatilities on Shanghai Xinhua 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 Shanghai Xinhua with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and CSSC Offshore.
Diversification Opportunities for Shanghai Xinhua and CSSC Offshore
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and CSSC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media 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 Shanghai Xinhua 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 Shanghai Xinhua Media 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 Shanghai Xinhua i.e., Shanghai Xinhua and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and CSSC Offshore
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to generate 1.54 times more return on investment than CSSC Offshore. However, Shanghai Xinhua is 1.54 times more volatile than CSSC Offshore Marine. It trades about 0.12 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.03 per unit of risk. If you would invest 400.00 in Shanghai Xinhua Media on September 1, 2024 and sell it today you would earn a total of 225.00 from holding Shanghai Xinhua Media or generate 56.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. CSSC Offshore Marine
Performance |
| Timeline |
| Shanghai Xinhua Media |
| CSSC Offshore Marine |
Shanghai Xinhua and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and CSSC Offshore
The main advantage of trading using opposite Shanghai Xinhua and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua 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.| Shanghai Xinhua vs. Chengdu B ray Media | Shanghai Xinhua vs. Shuhua Sports Co | Shanghai Xinhua vs. Heilongjiang Publishing Media | Shanghai Xinhua vs. Holitech Technology Co |
| CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank | CSSC Offshore vs. Bank of China | CSSC Offshore vs. Agricultural Bank of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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