Correlation Between Beijing Baolande and CSSC Offshore
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By analyzing existing cross correlation between Beijing Baolande Software and CSSC Offshore Marine, you can compare the effects of market volatilities on Beijing Baolande 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 Baolande with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and CSSC Offshore.
Diversification Opportunities for Beijing Baolande and CSSC Offshore
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and CSSC is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software 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 Baolande 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 Baolande Software 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 Baolande i.e., Beijing Baolande and CSSC Offshore go up and down completely randomly.
Pair Corralation between Beijing Baolande and CSSC Offshore
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the CSSC Offshore. In addition to that, Beijing Baolande is 1.72 times more volatile than CSSC Offshore Marine. It trades about -0.01 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 70.00 from holding CSSC Offshore Marine or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. CSSC Offshore Marine
Performance |
| Timeline |
| Beijing Baolande Software |
| CSSC Offshore Marine |
Beijing Baolande and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and CSSC Offshore
The main advantage of trading using opposite Beijing Baolande and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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 Baolande vs. Fiberhome Telecommunication Technologies | Beijing Baolande vs. Ningbo Homelink Eco iTech | Beijing Baolande vs. Sanbo Hospital Management | Beijing Baolande vs. Luolai Home Textile |
| CSSC Offshore vs. Beijing Baolande Software | CSSC Offshore vs. TianJin 712 Communication | CSSC Offshore vs. Guangdong Shenglu Telecommunication | CSSC Offshore vs. Digiwin Software 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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