Correlation Between Kunshan Guoli and CSSC Offshore
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By analyzing existing cross correlation between Kunshan Guoli Electronic and CSSC Offshore Marine, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and CSSC Offshore.
Diversification Opportunities for Kunshan Guoli and CSSC Offshore
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunshan and CSSC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic 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 Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and CSSC Offshore go up and down completely randomly.
Pair Corralation between Kunshan Guoli and CSSC Offshore
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 2.18 times more return on investment than CSSC Offshore. However, Kunshan Guoli is 2.18 times more volatile than CSSC Offshore Marine. It trades about -0.07 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.18 per unit of risk. If you would invest 4,499 in Kunshan Guoli Electronic on August 29, 2024 and sell it today you would lose (368.00) from holding Kunshan Guoli Electronic or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. CSSC Offshore Marine
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| CSSC Offshore Marine |
Kunshan Guoli and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and CSSC Offshore
The main advantage of trading using opposite Kunshan Guoli and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Nantong Haixing Electronics | Kunshan Guoli vs. Semiconductor Manufacturing Electronics | Kunshan Guoli vs. Puyang Huicheng Electronic | Kunshan Guoli vs. Northking Information Technology |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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