Correlation Between Beijing Kingsoft and CSSC Offshore
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By analyzing existing cross correlation between Beijing Kingsoft Office and CSSC Offshore Marine, you can compare the effects of market volatilities on Beijing Kingsoft 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 Kingsoft with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and CSSC Offshore.
Diversification Opportunities for Beijing Kingsoft and CSSC Offshore
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and CSSC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office 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 Kingsoft 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 Kingsoft Office 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 Kingsoft i.e., Beijing Kingsoft and CSSC Offshore go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and CSSC Offshore
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.63 times more return on investment than CSSC Offshore. However, Beijing Kingsoft is 1.63 times more volatile than CSSC Offshore Marine. It trades about 0.02 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.01 per unit of risk. If you would invest 30,251 in Beijing Kingsoft Office on October 29, 2024 and sell it today you would earn a total of 252.00 from holding Beijing Kingsoft Office or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. CSSC Offshore Marine
Performance |
| Timeline |
| Beijing Kingsoft Office |
| CSSC Offshore Marine |
Beijing Kingsoft and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and CSSC Offshore
The main advantage of trading using opposite Beijing Kingsoft and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft 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 Kingsoft vs. Shantui Construction Machinery | Beijing Kingsoft vs. Anhui Huilong Agricultural | Beijing Kingsoft vs. Qumei Furniture Group | Beijing Kingsoft vs. Nanxing Furniture Machinery |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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