Correlation Between CSSC Offshore and ODYSSEY GOLD
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and ODYSSEY GOLD 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 ODYSSEY GOLD 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 ODYSSEY GOLD LTD, you can compare the effects of market volatilities on CSSC Offshore and ODYSSEY GOLD 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 ODYSSEY GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and ODYSSEY GOLD.
Diversification Opportunities for CSSC Offshore and ODYSSEY GOLD
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSSC and ODYSSEY is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and ODYSSEY GOLD LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODYSSEY GOLD LTD 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 ODYSSEY GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODYSSEY GOLD LTD has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and ODYSSEY GOLD go up and down completely randomly.
Pair Corralation between CSSC Offshore and ODYSSEY GOLD
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.23 times more return on investment than ODYSSEY GOLD. However, CSSC Offshore Marine is 4.37 times less risky than ODYSSEY GOLD. It trades about 0.16 of its potential returns per unit of risk. ODYSSEY GOLD LTD is currently generating about 0.0 per unit of risk. If you would invest 125.00 in CSSC Offshore Marine on September 25, 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 | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
CSSC Offshore Marine vs. ODYSSEY GOLD LTD
Performance |
Timeline |
CSSC Offshore Marine |
ODYSSEY GOLD LTD |
CSSC Offshore and ODYSSEY GOLD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSSC Offshore and ODYSSEY GOLD
The main advantage of trading using opposite CSSC Offshore and ODYSSEY GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, ODYSSEY GOLD 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 ODYSSEY GOLD will offset losses from the drop in ODYSSEY GOLD's long position.CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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