Correlation Between GRIPM Advanced and CSSC Offshore
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By analyzing existing cross correlation between GRIPM Advanced Materials and CSSC Offshore Marine, you can compare the effects of market volatilities on GRIPM Advanced 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 GRIPM Advanced with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and CSSC Offshore.
Diversification Opportunities for GRIPM Advanced and CSSC Offshore
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GRIPM and CSSC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials 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 GRIPM Advanced 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 GRIPM Advanced Materials 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 GRIPM Advanced i.e., GRIPM Advanced and CSSC Offshore go up and down completely randomly.
Pair Corralation between GRIPM Advanced and CSSC Offshore
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.48 times more return on investment than CSSC Offshore. However, GRIPM Advanced is 1.48 times more volatile than CSSC Offshore Marine. It trades about 0.04 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 3,415 in GRIPM Advanced Materials on December 30, 2024 and sell it today you would earn a total of 109.00 from holding GRIPM Advanced Materials or generate 3.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GRIPM Advanced Materials vs. CSSC Offshore Marine
Performance |
Timeline |
GRIPM Advanced Materials |
CSSC Offshore Marine |
GRIPM Advanced and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIPM Advanced and CSSC Offshore
The main advantage of trading using opposite GRIPM Advanced and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced 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.GRIPM Advanced vs. Huaxia Eye Hospital | GRIPM Advanced vs. Everjoy Health Group | GRIPM Advanced vs. Aier Eye Hospital | GRIPM Advanced vs. Shanghai Rongtai Health |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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