Correlation Between Guobo Electronics and CSSC Offshore
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By analyzing existing cross correlation between Guobo Electronics Co and CSSC Offshore Marine, you can compare the effects of market volatilities on Guobo Electronics 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 Guobo Electronics with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guobo Electronics and CSSC Offshore.
Diversification Opportunities for Guobo Electronics and CSSC Offshore
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guobo and CSSC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guobo Electronics Co 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 Guobo Electronics 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 Guobo Electronics Co 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 Guobo Electronics i.e., Guobo Electronics and CSSC Offshore go up and down completely randomly.
Pair Corralation between Guobo Electronics and CSSC Offshore
Assuming the 90 days trading horizon Guobo Electronics Co is expected to under-perform the CSSC Offshore. In addition to that, Guobo Electronics is 1.59 times more volatile than CSSC Offshore Marine. It trades about -0.21 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.13 per unit of volatility. If you would invest 2,430 in CSSC Offshore Marine on October 31, 2024 and sell it today you would lose (93.00) from holding CSSC Offshore Marine or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guobo Electronics Co vs. CSSC Offshore Marine
Performance |
| Timeline |
| Guobo Electronics |
| CSSC Offshore Marine |
Guobo Electronics and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guobo Electronics and CSSC Offshore
The main advantage of trading using opposite Guobo Electronics and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guobo Electronics 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.| Guobo Electronics vs. Xiwang Foodstuffs Co | Guobo Electronics vs. Lander Sports Development | Guobo Electronics vs. Guilin Seamild Foods | Guobo Electronics vs. Shenzhen Topway Video |
| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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