Correlation Between CSSC Offshore and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on CSSC Offshore and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and INSURANCE AUST.
Diversification Opportunities for CSSC Offshore and INSURANCE AUST
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSSC and INSURANCE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and INSURANCE AUST go up and down completely randomly.
Pair Corralation between CSSC Offshore and INSURANCE AUST
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the INSURANCE AUST. In addition to that, CSSC Offshore is 1.69 times more volatile than INSURANCE AUST GRP. It trades about -0.12 of its total potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.44 per unit of volatility. If you would invest 436.00 in INSURANCE AUST GRP on September 2, 2024 and sell it today you would earn a total of 79.00 from holding INSURANCE AUST GRP or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. INSURANCE AUST GRP
Performance |
| Timeline |
| CSSC Offshore Marine |
| INSURANCE AUST GRP |
CSSC Offshore and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and INSURANCE AUST
The main advantage of trading using opposite CSSC Offshore and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST'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 |
| INSURANCE AUST vs. HYDROFARM HLD GRP | INSURANCE AUST vs. H FARM SPA | INSURANCE AUST vs. North American Construction | INSURANCE AUST vs. NTG Nordic Transport |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |