Correlation Between CSSC Offshore and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on CSSC Offshore and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and FEMALE HEALTH.
Diversification Opportunities for CSSC Offshore and FEMALE HEALTH
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSSC and FEMALE is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between CSSC Offshore and FEMALE HEALTH
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.52 times more return on investment than FEMALE HEALTH. However, CSSC Offshore Marine is 1.91 times less risky than FEMALE HEALTH. It trades about 0.16 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.07 per unit of risk. If you would invest 125.00 in CSSC Offshore Marine on September 24, 2024 and sell it today you would earn a total of 10.00 from holding CSSC Offshore Marine or generate 8.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
CSSC Offshore Marine vs. FEMALE HEALTH
Performance |
Timeline |
CSSC Offshore Marine |
FEMALE HEALTH |
CSSC Offshore and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSSC Offshore and FEMALE HEALTH
The main advantage of trading using opposite CSSC Offshore and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
FEMALE HEALTH vs. CSSC Offshore Marine | FEMALE HEALTH vs. SBM OFFSHORE | FEMALE HEALTH vs. Webster Financial | FEMALE HEALTH vs. Chesapeake Utilities |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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