Correlation Between CSSC Offshore and Dentsply Sirona

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

Diversification Opportunities for CSSC Offshore and Dentsply Sirona

0.29

Correlation Coefficient

CSSC Offshore  Dentsply Sirona

Modest diversification

The 3 months correlation between CSSC and Dentsply is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Dentsply Sirona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dentsply Sirona 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 Dentsply Sirona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dentsply Sirona has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Dentsply Sirona go up and down completely randomly.

Pair Corralation between CSSC Offshore and Dentsply Sirona

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 25.66 times less return on investment than Dentsply Sirona. But when comparing it to its historical volatility, CSSC Offshore Marine is 32.15 times less risky than Dentsply Sirona. It trades about 0.13 of its potential returns per unit of risk. Dentsply Sirona is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,114  in Dentsply Sirona on April 21, 2025 and sell it today you would earn a total of  222.00  from holding Dentsply Sirona or generate 19.93% return on investment over 90 days.

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

CSSC Offshore Marine  vs.  Dentsply Sirona

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.

Dentsply Sirona

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dentsply Sirona are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Dentsply Sirona reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSSC Offshore and Dentsply Sirona

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

The idea behind CSSC Offshore Marine and Dentsply Sirona 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.