Correlation Between CSSC Offshore and Dalata Hotel

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

Diversification Opportunities for CSSC Offshore and Dalata Hotel

0.93

Correlation Coefficient

CSSC Offshore  Dalata Hotel

Almost no diversification

The 3 months correlation between CSSC and Dalata is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Dalata Hotel go up and down completely randomly.

Pair Corralation between CSSC Offshore and Dalata Hotel

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 29.02 times less return on investment than Dalata Hotel. But when comparing it to its historical volatility, CSSC Offshore Marine is 19.28 times less risky than Dalata Hotel. It trades about 0.13 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  506.00  in Dalata Hotel Group on April 21, 2025 and sell it today you would earn a total of  131.00  from holding Dalata Hotel Group or generate 25.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

CSSC Offshore Marine  vs.  Dalata Hotel Group

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.

Dalata Hotel Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dalata Hotel Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Dalata Hotel reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSSC Offshore and Dalata Hotel

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

The idea behind CSSC Offshore Marine and Dalata Hotel Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.