Correlation Between CSSC Offshore and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Hemisphere Energy 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 Hemisphere Energy 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 Hemisphere Energy Corp, you can compare the effects of market volatilities on CSSC Offshore and Hemisphere Energy 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 Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Hemisphere Energy.
Diversification Opportunities for CSSC Offshore and Hemisphere Energy
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CSSC and Hemisphere is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Hemisphere Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy Corp 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 Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy Corp has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Hemisphere Energy go up and down completely randomly.
Pair Corralation between CSSC Offshore and Hemisphere Energy
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Hemisphere Energy. In addition to that, CSSC Offshore is 2.38 times more volatile than Hemisphere Energy Corp. It trades about -0.03 of its total potential returns per unit of risk. Hemisphere Energy Corp is currently generating about 0.0 per unit of volatility. If you would invest 121.00 in Hemisphere Energy Corp on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Hemisphere Energy Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Hemisphere Energy Corp
Performance |
| Timeline |
| CSSC Offshore Marine |
| Hemisphere Energy Corp |
CSSC Offshore and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Hemisphere Energy
The main advantage of trading using opposite CSSC Offshore and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Hemisphere Energy 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| CSSC Offshore vs. British American Tobacco | CSSC Offshore vs. SERI INDUSTRIAL EO | CSSC Offshore vs. Penta Ocean Construction Co | CSSC Offshore vs. Zijin Mining Group |
| Hemisphere Energy vs. BORR DRILLING NEW | Hemisphere Energy vs. SIEM OFFSHORE NEW | Hemisphere Energy vs. CSSC Offshore Marine | Hemisphere Energy vs. ARDAGH METAL PACDL 0001 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |