Correlation Between Citic Offshore and Tianrun Crankshaft

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Can any of the company-specific risk be diversified away by investing in both Citic Offshore and Tianrun Crankshaft 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 Citic Offshore and Tianrun Crankshaft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citic Offshore Helicopter and Tianrun Crankshaft Co, you can compare the effects of market volatilities on Citic Offshore and Tianrun Crankshaft 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 Citic Offshore with a short position of Tianrun Crankshaft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Tianrun Crankshaft.

Diversification Opportunities for Citic Offshore and Tianrun Crankshaft

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Citic and Tianrun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Tianrun Crankshaft Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianrun Crankshaft and Citic 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 Citic Offshore Helicopter are associated (or correlated) with Tianrun Crankshaft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianrun Crankshaft has no effect on the direction of Citic Offshore i.e., Citic Offshore and Tianrun Crankshaft go up and down completely randomly.

Pair Corralation between Citic Offshore and Tianrun Crankshaft

Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to under-perform the Tianrun Crankshaft. But the stock apears to be less risky and, when comparing its historical volatility, Citic Offshore Helicopter is 1.02 times less risky than Tianrun Crankshaft. The stock trades about -0.12 of its potential returns per unit of risk. The Tianrun Crankshaft Co is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  685.00  in Tianrun Crankshaft Co on September 10, 2025 and sell it today you would lose (66.00) from holding Tianrun Crankshaft Co or give up 9.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Citic Offshore Helicopter  vs.  Tianrun Crankshaft Co

 Performance 
       Timeline  
Citic Offshore Helicopter 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Citic Offshore Helicopter has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Tianrun Crankshaft 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Tianrun Crankshaft Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Citic Offshore and Tianrun Crankshaft Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citic Offshore and Tianrun Crankshaft

The main advantage of trading using opposite Citic Offshore and Tianrun Crankshaft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Tianrun Crankshaft 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 Tianrun Crankshaft will offset losses from the drop in Tianrun Crankshaft's long position.
The idea behind Citic Offshore Helicopter and Tianrun Crankshaft Co 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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