Correlation Between CSSC Offshore and CLOVER HEALTH
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and CLOVER HEALTH 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 CLOVER HEALTH 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 CLOVER HEALTH INV, you can compare the effects of market volatilities on CSSC Offshore and CLOVER HEALTH 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 CLOVER HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and CLOVER HEALTH.
Diversification Opportunities for CSSC Offshore and CLOVER HEALTH
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSSC and CLOVER is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and CLOVER HEALTH INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLOVER HEALTH INV 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 CLOVER HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLOVER HEALTH INV has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and CLOVER HEALTH go up and down completely randomly.
Pair Corralation between CSSC Offshore and CLOVER HEALTH
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the CLOVER HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 4.58 times less risky than CLOVER HEALTH. The stock trades about -0.29 of its potential returns per unit of risk. The CLOVER HEALTH INV is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 314.00 in CLOVER HEALTH INV on November 7, 2024 and sell it today you would earn a total of 108.00 from holding CLOVER HEALTH INV or generate 34.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CSSC Offshore Marine vs. CLOVER HEALTH INV
Performance |
| Timeline |
| CSSC Offshore Marine |
| CLOVER HEALTH INV |
CSSC Offshore and CLOVER HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and CLOVER HEALTH
The main advantage of trading using opposite CSSC Offshore and CLOVER HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, CLOVER HEALTH 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 CLOVER HEALTH will offset losses from the drop in CLOVER HEALTH's long position.| CSSC Offshore vs. HAVERTY FURNITURE A | CSSC Offshore vs. ULTRA CLEAN HLDGS | CSSC Offshore vs. KENEDIX OFFICE INV | CSSC Offshore vs. Siamgas And Petrochemicals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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