Correlation Between CSSC Offshore and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and JINS HOLDINGS 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 JINS HOLDINGS 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 JINS HOLDINGS INC, you can compare the effects of market volatilities on CSSC Offshore and JINS HOLDINGS 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 JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and JINS HOLDINGS.
Diversification Opportunities for CSSC Offshore and JINS HOLDINGS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CSSC and JINS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC 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 JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between CSSC Offshore and JINS HOLDINGS
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.59 times less return on investment than JINS HOLDINGS. But when comparing it to its historical volatility, CSSC Offshore Marine is 2.0 times less risky than JINS HOLDINGS. It trades about 0.05 of its potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,271 in JINS HOLDINGS INC on October 11, 2024 and sell it today you would earn a total of 2,869 from holding JINS HOLDINGS INC or generate 225.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. JINS HOLDINGS INC
Performance |
| Timeline |
| CSSC Offshore Marine |
| JINS HOLDINGS INC |
CSSC Offshore and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and JINS HOLDINGS
The main advantage of trading using opposite CSSC Offshore and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| CSSC Offshore vs. Take Two Interactive Software | CSSC Offshore vs. CLEAN ENERGY FUELS | CSSC Offshore vs. Easy Software AG | CSSC Offshore vs. Eidesvik Offshore ASA |
| JINS HOLDINGS vs. CSSC Offshore Marine | JINS HOLDINGS vs. Solstad Offshore ASA | JINS HOLDINGS vs. SIEM OFFSHORE NEW | JINS HOLDINGS vs. SOLSTAD OFFSHORE NK |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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