Correlation Between CHAMPION IRON and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both CHAMPION IRON and CSSC Offshore 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 CHAMPION IRON and CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHAMPION IRON and CSSC Offshore Marine, you can compare the effects of market volatilities on CHAMPION IRON and CSSC Offshore 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 CHAMPION IRON with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAMPION IRON and CSSC Offshore.
Diversification Opportunities for CHAMPION IRON and CSSC Offshore
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHAMPION and CSSC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION IRON and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and CHAMPION IRON 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 CHAMPION IRON are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of CHAMPION IRON i.e., CHAMPION IRON and CSSC Offshore go up and down completely randomly.
Pair Corralation between CHAMPION IRON and CSSC Offshore
Assuming the 90 days trading horizon CHAMPION IRON is expected to generate 25.05 times more return on investment than CSSC Offshore. However, CHAMPION IRON is 25.05 times more volatile than CSSC Offshore Marine. It trades about 0.09 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.13 per unit of risk. If you would invest 232.00 in CHAMPION IRON on April 23, 2025 and sell it today you would earn a total of 30.00 from holding CHAMPION IRON or generate 12.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CHAMPION IRON vs. CSSC Offshore Marine
Performance |
Timeline |
CHAMPION IRON |
CSSC Offshore Marine |
CHAMPION IRON and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CHAMPION IRON and CSSC Offshore
The main advantage of trading using opposite CHAMPION IRON and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION IRON position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.CHAMPION IRON vs. Sotherly Hotels | CHAMPION IRON vs. DAIDO METAL TD | CHAMPION IRON vs. PPHE HOTEL GROUP | CHAMPION IRON vs. MELIA HOTELS |
CSSC Offshore vs. AeroVironment | CSSC Offshore vs. IRONVELD PLC LS | CSSC Offshore vs. Chuangs China Investments | CSSC Offshore vs. CHAMPION IRON |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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