Correlation Between New China and CSSC Offshore
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By analyzing existing cross correlation between New China Life and CSSC Offshore Marine, you can compare the effects of market volatilities on New China 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 New China with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and CSSC Offshore.
Diversification Opportunities for New China and CSSC Offshore
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and CSSC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding New China Life 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 New China 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 New China Life 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 New China i.e., New China and CSSC Offshore go up and down completely randomly.
Pair Corralation between New China and CSSC Offshore
Assuming the 90 days trading horizon New China Life is expected to generate 1.52 times more return on investment than CSSC Offshore. However, New China is 1.52 times more volatile than CSSC Offshore Marine. It trades about 0.2 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 3,324 in New China Life on September 23, 2024 and sell it today you would earn a total of 1,640 from holding New China Life or generate 49.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
New China Life vs. CSSC Offshore Marine
Performance |
Timeline |
New China Life |
CSSC Offshore Marine |
New China and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New China and CSSC Offshore
The main advantage of trading using opposite New China and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.New China vs. Kweichow Moutai Co | New China vs. Shenzhen Mindray Bio Medical | New China vs. Jiangsu Pacific Quartz | New China vs. G bits Network Technology |
CSSC Offshore vs. New China Life | CSSC Offshore vs. Ming Yang Smart | CSSC Offshore vs. 159681 | CSSC Offshore vs. 159005 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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