Correlation Between CSSC Offshore and Mizuno
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Mizuno 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 Mizuno 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 Mizuno, you can compare the effects of market volatilities on CSSC Offshore and Mizuno 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 Mizuno. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Mizuno.
Diversification Opportunities for CSSC Offshore and Mizuno
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Mizuno is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Mizuno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizuno 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 Mizuno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mizuno has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Mizuno go up and down completely randomly.
Pair Corralation between CSSC Offshore and Mizuno
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Mizuno. But the stock apears to be less risky and, when comparing its historical volatility, CSSC Offshore Marine is 1.09 times less risky than Mizuno. The stock trades about -0.13 of its potential returns per unit of risk. The Mizuno is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,680 in Mizuno on September 4, 2024 and sell it today you would earn a total of 520.00 from holding Mizuno or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Mizuno
Performance |
| Timeline |
| CSSC Offshore Marine |
| Mizuno |
CSSC Offshore and Mizuno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Mizuno
The main advantage of trading using opposite CSSC Offshore and Mizuno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Mizuno 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 Mizuno will offset losses from the drop in Mizuno's long position.| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
| Mizuno vs. Solstad Offshore ASA | Mizuno vs. BlueScope Steel Limited | Mizuno vs. Harmony Gold Mining | Mizuno vs. CSSC Offshore Marine |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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