Correlation Between Aofu Environmental and CSSC Offshore
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By analyzing existing cross correlation between Aofu Environmental Technology and CSSC Offshore Marine, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and CSSC Offshore.
Diversification Opportunities for Aofu Environmental and CSSC Offshore
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aofu and CSSC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology 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 Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and CSSC Offshore go up and down completely randomly.
Pair Corralation between Aofu Environmental and CSSC Offshore
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 1.61 times more return on investment than CSSC Offshore. However, Aofu Environmental is 1.61 times more volatile than CSSC Offshore Marine. It trades about 0.13 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 838.00 in Aofu Environmental Technology on September 26, 2024 and sell it today you would earn a total of 248.00 from holding Aofu Environmental Technology or generate 29.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aofu Environmental Technology vs. CSSC Offshore Marine
Performance |
Timeline |
Aofu Environmental |
CSSC Offshore Marine |
Aofu Environmental and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aofu Environmental and CSSC Offshore
The main advantage of trading using opposite Aofu Environmental and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Shandong Gold Mining | Aofu Environmental vs. Rongsheng Petrochemical Co |
CSSC Offshore vs. Shenzhen MYS Environmental | CSSC Offshore vs. Citic Guoan Wine | CSSC Offshore vs. Aofu Environmental Technology | CSSC Offshore vs. GreenTech Environmental Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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