Correlation Between MARKET VECTR and CSSC Offshore

Can any of the company-specific risk be diversified away by investing in both MARKET VECTR 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 MARKET VECTR and CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MARKET VECTR RETAIL and CSSC Offshore Marine, you can compare the effects of market volatilities on MARKET VECTR 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 MARKET VECTR with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and CSSC Offshore.

Diversification Opportunities for MARKET VECTR and CSSC Offshore

0.12

Correlation Coefficient

MARKET VECTR  CSSC Offshore

Average diversification

The 3 months correlation between MARKET and CSSC is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL 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 MARKET VECTR 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 MARKET VECTR RETAIL 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 MARKET VECTR i.e., MARKET VECTR and CSSC Offshore go up and down completely randomly.

Pair Corralation between MARKET VECTR and CSSC Offshore

Assuming the 90 days trading horizon MARKET VECTR RETAIL is expected to generate 9.55 times more return on investment than CSSC Offshore. However, MARKET VECTR is 9.55 times more volatile than CSSC Offshore Marine. It trades about 0.11 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  19,190  in MARKET VECTR RETAIL on April 22, 2025 and sell it today you would earn a total of  1,255  from holding MARKET VECTR RETAIL or generate 6.54% return on investment over 90 days.

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

MARKET VECTR RETAIL  vs.  CSSC Offshore Marine

MARKET VECTR RETAIL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MARKET VECTR RETAIL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, MARKET VECTR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MARKET VECTR and CSSC Offshore

The main advantage of trading using opposite MARKET VECTR and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR 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.

The idea behind MARKET VECTR RETAIL and CSSC Offshore Marine 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.