Correlation Between Aluminum Corp and CSSC Offshore
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By analyzing existing cross correlation between Aluminum Corp of and CSSC Offshore Marine, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and CSSC Offshore.
Diversification Opportunities for Aluminum Corp and CSSC Offshore
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and CSSC is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and CSSC Offshore go up and down completely randomly.
Pair Corralation between Aluminum Corp and CSSC Offshore
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the CSSC Offshore. In addition to that, Aluminum Corp is 1.08 times more volatile than CSSC Offshore Marine. It trades about -0.23 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.22 per unit of volatility. If you would invest 2,471 in CSSC Offshore Marine on October 11, 2024 and sell it today you would lose (174.00) from holding CSSC Offshore Marine or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aluminum Corp of vs. CSSC Offshore Marine
Performance |
| Timeline |
| Aluminum Corp |
| CSSC Offshore Marine |
Aluminum Corp and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and CSSC Offshore
The main advantage of trading using opposite Aluminum Corp and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Xiamen Bank Co | Aluminum Corp vs. Qilu Bank Co | Aluminum Corp vs. Offcn Education Technology | Aluminum Corp vs. China Publishing Media |
| CSSC Offshore vs. Beijing Baolande Software | CSSC Offshore vs. TianJin 712 Communication | CSSC Offshore vs. Guangdong Shenglu Telecommunication | CSSC Offshore vs. Digiwin Software Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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