Correlation Between CSSC Offshore and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Luckin Coffee 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 Luckin Coffee 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 Luckin Coffee, you can compare the effects of market volatilities on CSSC Offshore and Luckin Coffee 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 Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Luckin Coffee.
Diversification Opportunities for CSSC Offshore and Luckin Coffee
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSSC and Luckin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee 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 Luckin Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luckin Coffee has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Luckin Coffee go up and down completely randomly.
Pair Corralation between CSSC Offshore and Luckin Coffee
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.78 times more return on investment than Luckin Coffee. However, CSSC Offshore Marine is 1.29 times less risky than Luckin Coffee. It trades about -0.12 of its potential returns per unit of risk. Luckin Coffee is currently generating about -0.14 per unit of risk. If you would invest 135.00 in CSSC Offshore Marine on September 2, 2024 and sell it today you would lose (11.00) from holding CSSC Offshore Marine or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Luckin Coffee
Performance |
| Timeline |
| CSSC Offshore Marine |
| Luckin Coffee |
CSSC Offshore and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Luckin Coffee
The main advantage of trading using opposite CSSC Offshore and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Luckin Coffee 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 Luckin Coffee will offset losses from the drop in Luckin Coffee's long position.| CSSC Offshore vs. Rogers Communications | CSSC Offshore vs. Computer And Technologies | CSSC Offshore vs. T MOBILE US | CSSC Offshore vs. Micron Technology |
| Luckin Coffee vs. ALBIS LEASING AG | Luckin Coffee vs. NEWELL RUBBERMAID | Luckin Coffee vs. ETFS Coffee ETC | Luckin Coffee vs. Vulcan Materials |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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