Correlation Between CSSC Offshore and MAANSHAN IRON

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

Diversification Opportunities for CSSC Offshore and MAANSHAN IRON

0.72

Correlation Coefficient

CSSC Offshore  MAANSHAN IRON

Poor diversification

The 3 months correlation between CSSC and MAANSHAN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and MAANSHAN IRON H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAANSHAN IRON H 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 MAANSHAN IRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAANSHAN IRON H has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and MAANSHAN IRON go up and down completely randomly.

Pair Corralation between CSSC Offshore and MAANSHAN IRON

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 9.02 times less return on investment than MAANSHAN IRON. But when comparing it to its historical volatility, CSSC Offshore Marine is 37.73 times less risky than MAANSHAN IRON. It trades about 0.13 of its potential returns per unit of risk. MAANSHAN IRON H is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  19.00  in MAANSHAN IRON H on April 13, 2025 and sell it today you would earn a total of  1.00  from holding MAANSHAN IRON H or generate 5.26% 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.  MAANSHAN IRON H

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 10 (%) 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.

MAANSHAN IRON H

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MAANSHAN IRON H are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, MAANSHAN IRON may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CSSC Offshore and MAANSHAN IRON

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

The idea behind CSSC Offshore Marine and MAANSHAN IRON H 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.