Correlation Between CSSC Offshore and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on CSSC Offshore and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and COSMOSTEEL HLDGS.
Diversification Opportunities for CSSC Offshore and COSMOSTEEL HLDGS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSSC and COSMOSTEEL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between CSSC Offshore and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 1.03 times more return on investment than COSMOSTEEL HLDGS. However, CSSC Offshore is 1.03 times more volatile than COSMOSTEEL HLDGS. It trades about 0.04 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.0 per unit of risk. If you would invest 105.00 in CSSC Offshore Marine on September 3, 2024 and sell it today you would earn a total of 19.00 from holding CSSC Offshore Marine or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| CSSC Offshore Marine |
| COSMOSTEEL HLDGS |
CSSC Offshore and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and COSMOSTEEL HLDGS
The main advantage of trading using opposite CSSC Offshore and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS'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 |
| COSMOSTEEL HLDGS vs. EHEALTH | COSMOSTEEL HLDGS vs. Taylor Morrison Home | COSMOSTEEL HLDGS vs. Neinor Homes SA | COSMOSTEEL HLDGS vs. FEMALE HEALTH |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |