Correlation Between CSSC Offshore and INFORMATION SVC

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

Diversification Opportunities for CSSC Offshore and INFORMATION SVC

0.23

Correlation Coefficient

CSSC Offshore  INFORMATION SVC

Modest diversification

The 3 months correlation between CSSC and INFORMATION is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and INFORMATION SVC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFORMATION SVC GRP 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 INFORMATION SVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFORMATION SVC GRP has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and INFORMATION SVC go up and down completely randomly.

Pair Corralation between CSSC Offshore and INFORMATION SVC

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 16.65 times less return on investment than INFORMATION SVC. But when comparing it to its historical volatility, CSSC Offshore Marine is 30.08 times less risky than INFORMATION SVC. It trades about 0.12 of its potential returns per unit of risk. INFORMATION SVC GRP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  335.00  in INFORMATION SVC GRP on May 6, 2025 and sell it today you would earn a total of  39.00  from holding INFORMATION SVC GRP or generate 11.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

CSSC Offshore Marine  vs.  INFORMATION SVC GRP

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.

INFORMATION SVC GRP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in INFORMATION SVC GRP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, INFORMATION SVC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSSC Offshore and INFORMATION SVC

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

The idea behind CSSC Offshore Marine and INFORMATION SVC GRP 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.