Correlation Between CSSC Offshore and MOVIE GAMES

Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on CSSC Offshore and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and MOVIE GAMES.

Diversification Opportunities for CSSC Offshore and MOVIE GAMES

0.04

Correlation Coefficient

CSSC Offshore  MOVIE GAMES

Significant diversification

The 3 months correlation between CSSC and MOVIE is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and MOVIE GAMES go up and down completely randomly.

Pair Corralation between CSSC Offshore and MOVIE GAMES

Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.05 times more return on investment than MOVIE GAMES. However, CSSC Offshore Marine is 19.26 times less risky than MOVIE GAMES. It trades about 0.13 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about -0.03 per unit of risk. If you would invest  121.00  in CSSC Offshore Marine on April 23, 2025 and sell it today you would earn a total of  1.00  from holding CSSC Offshore Marine or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CSSC Offshore Marine  vs.  MOVIE GAMES SA

CSSC Offshore Marine

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSSC Offshore Marine are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CSSC Offshore is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

MOVIE GAMES SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOVIE GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MOVIE GAMES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CSSC Offshore and MOVIE GAMES

The main advantage of trading using opposite CSSC Offshore and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.

The idea behind CSSC Offshore Marine and MOVIE GAMES SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.