Correlation Between Fuzhou Rockchip and CSSC Offshore
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and CSSC Offshore Marine, you can compare the effects of market volatilities on Fuzhou Rockchip 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 Fuzhou Rockchip with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and CSSC Offshore.
Diversification Opportunities for Fuzhou Rockchip and CSSC Offshore
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fuzhou and CSSC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics 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 Fuzhou Rockchip 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 Fuzhou Rockchip Electronics 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 Fuzhou Rockchip i.e., Fuzhou Rockchip and CSSC Offshore go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and CSSC Offshore
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to under-perform the CSSC Offshore. In addition to that, Fuzhou Rockchip is 1.28 times more volatile than CSSC Offshore Marine. It trades about -0.17 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.18 per unit of volatility. If you would invest 2,631 in CSSC Offshore Marine on August 29, 2024 and sell it today you would lose (206.00) from holding CSSC Offshore Marine or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. CSSC Offshore Marine
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| CSSC Offshore Marine |
Fuzhou Rockchip and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and CSSC Offshore
The main advantage of trading using opposite Fuzhou Rockchip and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip 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.| Fuzhou Rockchip vs. Lutian Machinery Co | Fuzhou Rockchip vs. China Longyuan Power | Fuzhou Rockchip vs. Changshu Tongrun Auto | Fuzhou Rockchip vs. PetroChina Co Ltd |
| CSSC Offshore vs. Biwin Storage Technology | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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