Correlation Between Beijing Shanghai and CSSC Offshore
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By analyzing existing cross correlation between Beijing Shanghai High Speed and CSSC Offshore Marine, you can compare the effects of market volatilities on Beijing Shanghai 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 Beijing Shanghai with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and CSSC Offshore.
Diversification Opportunities for Beijing Shanghai and CSSC Offshore
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and CSSC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed 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 Beijing Shanghai 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 Beijing Shanghai High Speed 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 Beijing Shanghai i.e., Beijing Shanghai and CSSC Offshore go up and down completely randomly.
Pair Corralation between Beijing Shanghai and CSSC Offshore
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to generate 0.61 times more return on investment than CSSC Offshore. However, Beijing Shanghai High Speed is 1.64 times less risky than CSSC Offshore. It trades about 0.07 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.02 per unit of risk. If you would invest 506.00 in Beijing Shanghai High Speed on August 29, 2024 and sell it today you would earn a total of 59.00 from holding Beijing Shanghai High Speed or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. CSSC Offshore Marine
Performance |
| Timeline |
| Beijing Shanghai High |
| CSSC Offshore Marine |
Beijing Shanghai and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and CSSC Offshore
The main advantage of trading using opposite Beijing Shanghai and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai 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.| Beijing Shanghai vs. Yonyou Auto Information | Beijing Shanghai vs. Digital China Information | Beijing Shanghai vs. Jiaozuo Wanfang Aluminum | Beijing Shanghai vs. Anhui Transport Consulting |
| CSSC Offshore vs. Tieling Newcity Investment | CSSC Offshore vs. Hengdian Entertainment Co | CSSC Offshore vs. Inly Media Co | CSSC Offshore vs. Shanghai Xinhua Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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