Correlation Between Stellar and Citic Offshore
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By analyzing existing cross correlation between Stellar and Citic Offshore Helicopter, you can compare the effects of market volatilities on Stellar and Citic Offshore 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 Stellar with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and Citic Offshore.
Diversification Opportunities for Stellar and Citic Offshore
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stellar and Citic is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Stellar 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 Stellar are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Stellar i.e., Stellar and Citic Offshore go up and down completely randomly.
Pair Corralation between Stellar and Citic Offshore
Assuming the 90 days trading horizon Stellar is expected to generate 2.4 times more return on investment than Citic Offshore. However, Stellar is 2.4 times more volatile than Citic Offshore Helicopter. It trades about -0.02 of its potential returns per unit of risk. Citic Offshore Helicopter is currently generating about -0.23 per unit of risk. If you would invest 43.00 in Stellar on October 12, 2024 and sell it today you would lose (4.00) from holding Stellar or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellar vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Stellar |
| Citic Offshore Helicopter |
Stellar and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and Citic Offshore
The main advantage of trading using opposite Stellar and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.The idea behind Stellar and Citic Offshore Helicopter pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Citic Offshore vs. Fiberhome Telecommunication Technologies | Citic Offshore vs. Zhangjiagang Freetrade Science | Citic Offshore vs. Guangzhou Dongfang Hotel | Citic Offshore vs. Guangzhou Seagull Kitchen |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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