Correlation Between New Residential and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both New Residential and CSSC Offshore 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 New Residential and CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and CSSC Offshore Marine, you can compare the effects of market volatilities on New Residential 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 Residential with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and CSSC Offshore.
Diversification Opportunities for New Residential and CSSC Offshore
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and CSSC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment 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 Residential 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 Residential Investment 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 Residential i.e., New Residential and CSSC Offshore go up and down completely randomly.
Pair Corralation between New Residential and CSSC Offshore
If you would invest 964.00 in New Residential Investment on April 13, 2025 and sell it today you would earn a total of 37.00 from holding New Residential Investment or generate 3.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
New Residential Investment vs. CSSC Offshore Marine
Performance |
Timeline |
New Residential Inve |
CSSC Offshore Marine |
New Residential and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New Residential and CSSC Offshore
The main advantage of trading using opposite New Residential and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential 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 Residential vs. YATRA ONLINE DL 0001 | New Residential vs. BANK OF CHINA | New Residential vs. BANK OF QUEENSLAND | New Residential vs. LG Electronics |
CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |