Correlation Between Shenzhen MYS and CSSC Offshore
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By analyzing existing cross correlation between Shenzhen MYS Environmental and CSSC Offshore Marine, you can compare the effects of market volatilities on Shenzhen MYS and CSSC 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 Shenzhen MYS with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and CSSC Offshore.
Diversification Opportunities for Shenzhen MYS and CSSC Offshore
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and CSSC is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and Shenzhen MYS 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 Shenzhen MYS Environmental are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and CSSC Offshore go up and down completely randomly.
Pair Corralation between Shenzhen MYS and CSSC Offshore
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.54 times more return on investment than CSSC Offshore. However, Shenzhen MYS is 1.54 times more volatile than CSSC Offshore Marine. It trades about 0.11 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.02 per unit of risk. If you would invest 296.00 in Shenzhen MYS Environmental on September 26, 2024 and sell it today you would earn a total of 65.00 from holding Shenzhen MYS Environmental or generate 21.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. CSSC Offshore Marine
Performance |
Timeline |
Shenzhen MYS Environ |
CSSC Offshore Marine |
Shenzhen MYS and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and CSSC Offshore
The main advantage of trading using opposite Shenzhen MYS and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, CSSC 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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