Correlation Between CSSC Offshore and ZINC MEDIA

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

Diversification Opportunities for CSSC Offshore and ZINC MEDIA

0.67

Correlation Coefficient

CSSC Offshore  ZINC MEDIA

Poor diversification

The 3 months correlation between CSSC and ZINC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and ZINC MEDIA GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINC MEDIA GR 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 ZINC MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINC MEDIA GR has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and ZINC MEDIA go up and down completely randomly.

Pair Corralation between CSSC Offshore and ZINC MEDIA

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 23.69 times less return on investment than ZINC MEDIA. But when comparing it to its historical volatility, CSSC Offshore Marine is 21.93 times less risky than ZINC MEDIA. It trades about 0.13 of its potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  66.00  in ZINC MEDIA GR on April 20, 2025 and sell it today you would earn a total of  13.00  from holding ZINC MEDIA GR or generate 19.7% return on investment over 90 days.

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

CSSC Offshore Marine  vs.  ZINC MEDIA GR

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.

ZINC MEDIA GR

Risk-Adjusted Performance

OK

Over the last 90 days ZINC MEDIA GR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, ZINC MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSSC Offshore and ZINC MEDIA

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

The idea behind CSSC Offshore Marine and ZINC MEDIA GR 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 Global Correlations module to find global opportunities by holding instruments from different markets.