Correlation Between HeBei Jinniu and CSSC Offshore
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By analyzing existing cross correlation between HeBei Jinniu Chemical and CSSC Offshore Marine, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and CSSC Offshore.
Diversification Opportunities for HeBei Jinniu and CSSC Offshore
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HeBei and CSSC is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical 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 HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and CSSC Offshore go up and down completely randomly.
Pair Corralation between HeBei Jinniu and CSSC Offshore
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 2.23 times more return on investment than CSSC Offshore. However, HeBei Jinniu is 2.23 times more volatile than CSSC Offshore Marine. It trades about 0.12 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.05 per unit of risk. If you would invest 479.00 in HeBei Jinniu Chemical on December 30, 2024 and sell it today you would earn a total of 91.00 from holding HeBei Jinniu Chemical or generate 19.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
HeBei Jinniu Chemical vs. CSSC Offshore Marine
Performance |
Timeline |
HeBei Jinniu Chemical |
CSSC Offshore Marine |
HeBei Jinniu and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HeBei Jinniu and CSSC Offshore
The main advantage of trading using opposite HeBei Jinniu and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.HeBei Jinniu vs. Bloomage Biotechnology Corp | HeBei Jinniu vs. New Hope Dairy | HeBei Jinniu vs. Lootom Telcovideo Network | HeBei Jinniu vs. V V Food |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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