Correlation Between CSSC Offshore and SALTX TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and SALTX TECHNOLOGY 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 SALTX TECHNOLOGY 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 SALTX TECHNOLOGY HLDG, you can compare the effects of market volatilities on CSSC Offshore and SALTX TECHNOLOGY 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 SALTX TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and SALTX TECHNOLOGY.
Diversification Opportunities for CSSC Offshore and SALTX TECHNOLOGY
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSSC and SALTX is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and SALTX TECHNOLOGY HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALTX TECHNOLOGY HLDG 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 SALTX TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALTX TECHNOLOGY HLDG has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and SALTX TECHNOLOGY go up and down completely randomly.
Pair Corralation between CSSC Offshore and SALTX TECHNOLOGY
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.55 times more return on investment than SALTX TECHNOLOGY. However, CSSC Offshore Marine is 1.83 times less risky than SALTX TECHNOLOGY. It trades about 0.24 of its potential returns per unit of risk. SALTX TECHNOLOGY HLDG is currently generating about -0.1 per unit of risk. If you would invest 123.00 in CSSC Offshore Marine on September 28, 2024 and sell it today you would earn a total of 14.00 from holding CSSC Offshore Marine or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CSSC Offshore Marine vs. SALTX TECHNOLOGY HLDG
Performance |
| Timeline |
| CSSC Offshore Marine |
| SALTX TECHNOLOGY HLDG |
CSSC Offshore and SALTX TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and SALTX TECHNOLOGY
The main advantage of trading using opposite CSSC Offshore and SALTX TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, SALTX TECHNOLOGY 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 SALTX TECHNOLOGY will offset losses from the drop in SALTX TECHNOLOGY's long position.| CSSC Offshore vs. ALIOR BANK | CSSC Offshore vs. Webster Financial | CSSC Offshore vs. Siamgas And Petrochemicals | CSSC Offshore vs. OAKTRSPECLENDNEW |
| SALTX TECHNOLOGY vs. Jupiter Fund Management | SALTX TECHNOLOGY vs. Perdoceo Education | SALTX TECHNOLOGY vs. CSSC Offshore Marine | SALTX TECHNOLOGY vs. SIEM OFFSHORE NEW |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |