Correlation Between CSSC Offshore and Blackstone
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on CSSC Offshore and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Blackstone.
Diversification Opportunities for CSSC Offshore and Blackstone
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CSSC and Blackstone is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Blackstone go up and down completely randomly.
Pair Corralation between CSSC Offshore and Blackstone
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Blackstone. In addition to that, CSSC Offshore is 1.3 times more volatile than Blackstone Group. It trades about -0.13 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.32 per unit of volatility. If you would invest 15,580 in Blackstone Group on September 3, 2024 and sell it today you would earn a total of 2,540 from holding Blackstone Group or generate 16.3% 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. Blackstone Group
Performance |
| Timeline |
| CSSC Offshore Marine |
| Blackstone Group |
CSSC Offshore and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Blackstone
The main advantage of trading using opposite CSSC Offshore and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| CSSC Offshore vs. SBA Communications Corp | CSSC Offshore vs. FIREWEED METALS P | CSSC Offshore vs. Jacquet Metal Service | CSSC Offshore vs. Shenandoah Telecommunications |
| Blackstone vs. CSSC Offshore Marine | Blackstone vs. OFFICE DEPOT | Blackstone vs. Solstad Offshore ASA | Blackstone vs. SOFI TECHNOLOGIES |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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