Correlation Between CSSC Offshore and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Gladstone Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CSSC Offshore and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSSC Offshore Marine and Gladstone Investment, you can compare the effects of market volatilities on CSSC Offshore and Gladstone Investment 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 CSSC Offshore with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Gladstone Investment.
Diversification Opportunities for CSSC Offshore and Gladstone Investment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSSC and Gladstone is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and CSSC Offshore 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 CSSC Offshore Marine are associated (or correlated) with Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Gladstone Investment go up and down completely randomly.
Pair Corralation between CSSC Offshore and Gladstone Investment
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 2.02 times more return on investment than Gladstone Investment. However, CSSC Offshore is 2.02 times more volatile than Gladstone Investment. It trades about 0.04 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.05 per unit of risk. If you would invest 116.00 in CSSC Offshore Marine on August 25, 2024 and sell it today you would earn a total of 19.00 from holding CSSC Offshore Marine or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Gladstone Investment
Performance |
| Timeline |
| CSSC Offshore Marine |
| Gladstone Investment |
CSSC Offshore and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Gladstone Investment
The main advantage of trading using opposite CSSC Offshore and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
| Gladstone Investment vs. Lyxor 1 | Gladstone Investment vs. Xtrackers LevDAX | Gladstone Investment vs. Xtrackers ShortDAX |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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