Correlation Between Guangdong Liantai and CSSC Offshore
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By analyzing existing cross correlation between Guangdong Liantai Environmental and CSSC Offshore Marine, you can compare the effects of market volatilities on Guangdong Liantai 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 Guangdong Liantai with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and CSSC Offshore.
Diversification Opportunities for Guangdong Liantai and CSSC Offshore
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and CSSC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta 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 Guangdong Liantai 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 Guangdong Liantai Environmental 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 Guangdong Liantai i.e., Guangdong Liantai and CSSC Offshore go up and down completely randomly.
Pair Corralation between Guangdong Liantai and CSSC Offshore
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to under-perform the CSSC Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Liantai Environmental is 1.14 times less risky than CSSC Offshore. The stock trades about -0.03 of its potential returns per unit of risk. The CSSC Offshore Marine is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,299 in CSSC Offshore Marine on October 29, 2024 and sell it today you would earn a total of 38.00 from holding CSSC Offshore Marine or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. CSSC Offshore Marine
Performance |
| Timeline |
| Guangdong Liantai |
| CSSC Offshore Marine |
Guangdong Liantai and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and CSSC Offshore
The main advantage of trading using opposite Guangdong Liantai and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai 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.| Guangdong Liantai vs. Jiangxi Lianchuang Opto electronic | Guangdong Liantai vs. Shenzhen Topway Video | Guangdong Liantai vs. Leyard Optoelectronic | Guangdong Liantai vs. Cicc Fund Management |
| CSSC Offshore vs. Anhui Transport Consulting | CSSC Offshore vs. Hubei Geoway Investment | CSSC Offshore vs. Beijing Mainstreets Investment | CSSC Offshore vs. Shenzhen Centralcon Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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