Correlation Between CSSC Offshore and Sharetronic Data

Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Sharetronic Data 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 Sharetronic Data 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 Sharetronic Data Technology, you can compare the effects of market volatilities on CSSC Offshore and Sharetronic Data 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 Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Sharetronic Data.

Diversification Opportunities for CSSC Offshore and Sharetronic Data

-0.58

Correlation Coefficient

CSSC Offshore  Sharetronic Data

Excellent diversification

The 3 months correlation between CSSC and Sharetronic is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec 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 Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Sharetronic Data go up and down completely randomly.

Pair Corralation between CSSC Offshore and Sharetronic Data

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 11.96 times less return on investment than Sharetronic Data. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.77 times less risky than Sharetronic Data. It trades about 0.02 of its potential returns per unit of risk. Sharetronic Data Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,971  in Sharetronic Data Technology on October 10, 2024 and sell it today you would earn a total of  8,478  from holding Sharetronic Data Technology or generate 430.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CSSC Offshore Marine  vs.  Sharetronic Data Technology

CSSC Offshore Marine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CSSC Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Sharetronic Data Tec

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sharetronic Data Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sharetronic Data sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSSC Offshore and Sharetronic Data

The main advantage of trading using opposite CSSC Offshore and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's long position.

The idea behind CSSC Offshore Marine and Sharetronic Data Technology 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.