Correlation Between CSSC Offshore and HITACHI CONSTRMACHADR/2

Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 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 HITACHI STRMACHADR2, you can compare the effects of market volatilities on CSSC Offshore and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and HITACHI CONSTRMACHADR/2.

Diversification Opportunities for CSSC Offshore and HITACHI CONSTRMACHADR/2

-0.35

Correlation Coefficient

CSSC Offshore  HITACHI CONSTRMACHADR/2

Very good diversification

The 3 months correlation between CSSC and HITACHI is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and HITACHI STRMACHADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITACHI CONSTRMACHADR/2 has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and HITACHI CONSTRMACHADR/2 go up and down completely randomly.

Pair Corralation between CSSC Offshore and HITACHI CONSTRMACHADR/2

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 4.66 times less return on investment than HITACHI CONSTRMACHADR/2. But when comparing it to its historical volatility, CSSC Offshore Marine is 17.42 times less risky than HITACHI CONSTRMACHADR/2. It trades about 0.12 of its potential returns per unit of risk. HITACHI STRMACHADR2 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  5,200  in HITACHI STRMACHADR2 on May 18, 2025 and sell it today you would earn a total of  150.00  from holding HITACHI STRMACHADR2 or generate 2.88% return on investment over 90 days.

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

CSSC Offshore Marine  vs.  HITACHI STRMACHADR2

CSSC Offshore Marine

Risk-Adjusted Performance

Fair

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.

HITACHI CONSTRMACHADR/2

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HITACHI STRMACHADR2 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, HITACHI CONSTRMACHADR/2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CSSC Offshore and HITACHI CONSTRMACHADR/2

The main advantage of trading using opposite CSSC Offshore and HITACHI CONSTRMACHADR/2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 will offset losses from the drop in HITACHI CONSTRMACHADR/2's long position.

The idea behind CSSC Offshore Marine and HITACHI STRMACHADR2 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.