Correlation Between CSSC Offshore and Martifer SGPS
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Martifer SGPS 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 Martifer SGPS 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 Martifer SGPS SA, you can compare the effects of market volatilities on CSSC Offshore and Martifer SGPS 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 Martifer SGPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Martifer SGPS.
Diversification Opportunities for CSSC Offshore and Martifer SGPS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and Martifer is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Martifer SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martifer SGPS SA 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 Martifer SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martifer SGPS SA has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Martifer SGPS go up and down completely randomly.
Pair Corralation between CSSC Offshore and Martifer SGPS
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 1.44 times more return on investment than Martifer SGPS. However, CSSC Offshore is 1.44 times more volatile than Martifer SGPS SA. It trades about 0.04 of its potential returns per unit of risk. Martifer SGPS SA is currently generating about 0.05 per unit of risk. If you would invest 89.00 in CSSC Offshore Marine on October 23, 2024 and sell it today you would earn a total of 33.00 from holding CSSC Offshore Marine or generate 37.08% 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. Martifer SGPS SA
Performance |
| Timeline |
| CSSC Offshore Marine |
| Martifer SGPS SA |
CSSC Offshore and Martifer SGPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Martifer SGPS
The main advantage of trading using opposite CSSC Offshore and Martifer SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Martifer SGPS 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 Martifer SGPS will offset losses from the drop in Martifer SGPS's long position.| CSSC Offshore vs. CITIC Telecom International | CSSC Offshore vs. OPKO HEALTH | CSSC Offshore vs. TELECOM ITALIA | CSSC Offshore vs. China Communications Services |
| Martifer SGPS vs. ONWARD MEDICAL BV | Martifer SGPS vs. GOLD ROAD RES | Martifer SGPS vs. Texas Roadhouse | Martifer SGPS vs. CVR Medical Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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