Correlation Between CSSC Offshore and Jiujiang Shanshui
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By analyzing existing cross correlation between CSSC Offshore Marine and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on CSSC Offshore and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Jiujiang Shanshui.
Diversification Opportunities for CSSC Offshore and Jiujiang Shanshui
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSSC and Jiujiang is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between CSSC Offshore and Jiujiang Shanshui
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 3.31 times less return on investment than Jiujiang Shanshui. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.23 times less risky than Jiujiang Shanshui. It trades about 0.05 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,287 in Jiujiang Shanshui Technology on September 23, 2024 and sell it today you would earn a total of 337.00 from holding Jiujiang Shanshui Technology or generate 26.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CSSC Offshore Marine vs. Jiujiang Shanshui Technology
Performance |
Timeline |
CSSC Offshore Marine |
Jiujiang Shanshui |
CSSC Offshore and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSSC Offshore and Jiujiang Shanshui
The main advantage of trading using opposite CSSC Offshore and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.CSSC Offshore vs. New China Life | CSSC Offshore vs. Ming Yang Smart | CSSC Offshore vs. 159681 | CSSC Offshore vs. 159005 |
Jiujiang Shanshui vs. Maoming Petro Chemical Shihua | Jiujiang Shanshui vs. Do Fluoride Chemicals Co | Jiujiang Shanshui vs. CSSC Offshore Marine | Jiujiang Shanshui vs. Shandong Polymer Biochemicals |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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