Correlation Between CSSC Offshore and MSCI

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

Diversification Opportunities for CSSC Offshore and MSCI

-0.11

Correlation Coefficient

CSSC Offshore  MSCI

Good diversification

The 3 months correlation between CSSC and MSCI is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and MSCI go up and down completely randomly.

Pair Corralation between CSSC Offshore and MSCI

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 8.13 times less return on investment than MSCI. But when comparing it to its historical volatility, CSSC Offshore Marine is 13.64 times less risky than MSCI. It trades about 0.13 of its potential returns per unit of risk. MSCI Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  46,673  in MSCI Inc on April 22, 2025 and sell it today you would earn a total of  2,977  from holding MSCI Inc or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CSSC Offshore Marine  vs.  MSCI Inc

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.

MSCI Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, MSCI may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CSSC Offshore and MSCI

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

The idea behind CSSC Offshore Marine and MSCI Inc 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.