Correlation Between CSSC Offshore and MPH Health

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

Diversification Opportunities for CSSC Offshore and MPH Health

-0.94

Correlation Coefficient

CSSC Offshore  MPH Health

Pay attention - limited upside

The 3 months correlation between CSSC and MPH is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and MPH Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPH Health Care 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 MPH Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPH Health Care has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and MPH Health go up and down completely randomly.

Pair Corralation between CSSC Offshore and MPH Health

Assuming the 90 days trading horizon CSSC Offshore Marine is expected to generate 0.03 times more return on investment than MPH Health. However, CSSC Offshore Marine is 38.53 times less risky than MPH Health. It trades about 0.13 of its potential returns per unit of risk. MPH Health Care is currently generating about -0.04 per unit of risk. If you would invest  121.00  in CSSC Offshore Marine on April 20, 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 Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CSSC Offshore Marine  vs.  MPH Health Care

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

MPH Health Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days MPH Health Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with CSSC Offshore and MPH Health

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

The idea behind CSSC Offshore Marine and MPH Health Care 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.