Correlation Between CSSC Offshore and International Game
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on CSSC Offshore and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and International Game.
Diversification Opportunities for CSSC Offshore and International Game
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CSSC and International is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and International Game go up and down completely randomly.
Pair Corralation between CSSC Offshore and International Game
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 1.35 times more return on investment than International Game. However, CSSC Offshore is 1.35 times more volatile than International Game Technology. It trades about 0.03 of its potential returns per unit of risk. International Game Technology is currently generating about -0.02 per unit of risk. If you would invest 102.00 in CSSC Offshore Marine on November 27, 2024 and sell it today you would earn a total of 20.00 from holding CSSC Offshore Marine or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. International Game Technology
Performance |
| Timeline |
| CSSC Offshore Marine |
| International Game |
CSSC Offshore and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and International Game
The main advantage of trading using opposite CSSC Offshore and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| CSSC Offshore vs. DELTA AIR LINES | CSSC Offshore vs. STORE ELECTRONIC | CSSC Offshore vs. Altair Engineering | CSSC Offshore vs. STMicroelectronics NV |
| International Game vs. Burlington Stores | International Game vs. BURLINGTON STORES | International Game vs. Strategic Education | International Game vs. EEDUCATION ALBERT AB |
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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