Correlation Between Bank of China and CSSC Offshore
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By analyzing existing cross correlation between Bank of China and CSSC Offshore Marine, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and CSSC Offshore.
Diversification Opportunities for Bank of China and CSSC Offshore
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and CSSC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and CSSC Offshore go up and down completely randomly.
Pair Corralation between Bank of China and CSSC Offshore
Assuming the 90 days trading horizon Bank of China is expected to generate 0.58 times more return on investment than CSSC Offshore. However, Bank of China is 1.72 times less risky than CSSC Offshore. It trades about 0.09 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 298.00 in Bank of China on September 3, 2024 and sell it today you would earn a total of 203.00 from holding Bank of China or generate 68.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. CSSC Offshore Marine
Performance |
| Timeline |
| Bank of China |
| CSSC Offshore Marine |
Bank of China and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and CSSC Offshore
The main advantage of trading using opposite Bank of China and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Tongyu Communication | Bank of China vs. Guangzhou Haige Communications | Bank of China vs. Everdisplay Optronics Shanghai | Bank of China vs. Wuhan Yangtze Communication |
| CSSC Offshore vs. Shandong Mining Machinery | CSSC Offshore vs. Shengda Mining Co | CSSC Offshore vs. Bangyan Technology Co | CSSC Offshore vs. Hainan Mining 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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