Correlation Between Liaoning Dingjide and CSSC Offshore
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and CSSC Offshore Marine, you can compare the effects of market volatilities on Liaoning Dingjide 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 Liaoning Dingjide with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and CSSC Offshore.
Diversification Opportunities for Liaoning Dingjide and CSSC Offshore
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liaoning and CSSC is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica 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 Liaoning Dingjide 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 Liaoning Dingjide Petrochemical 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 Liaoning Dingjide i.e., Liaoning Dingjide and CSSC Offshore go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and CSSC Offshore
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to under-perform the CSSC Offshore. In addition to that, Liaoning Dingjide is 1.16 times more volatile than CSSC Offshore Marine. It trades about -0.02 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.01 per unit of volatility. If you would invest 2,221 in CSSC Offshore Marine on October 11, 2024 and sell it today you would earn a total of 76.00 from holding CSSC Offshore Marine or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. CSSC Offshore Marine
Performance |
| Timeline |
| Liaoning Dingjide |
| CSSC Offshore Marine |
Liaoning Dingjide and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and CSSC Offshore
The main advantage of trading using opposite Liaoning Dingjide and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide 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.| Liaoning Dingjide vs. Shanghai Yaoji Playing | Liaoning Dingjide vs. Kunwu Jiuding Investment | Liaoning Dingjide vs. Weichai Heavy Machinery | Liaoning Dingjide vs. Shenzhen AV Display Co |
| CSSC Offshore vs. Chengdu Kanghua Biological | CSSC Offshore vs. Beijing Wantai Biological | CSSC Offshore vs. Suzhou Novoprotein Scientific | CSSC Offshore vs. Aluminum Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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