Correlation Between SITC International and COSCO SHIPPING
Can any of the company-specific risk be diversified away by investing in both SITC International and COSCO SHIPPING 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 SITC International and COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and COSCO SHIPPING Energy, you can compare the effects of market volatilities on SITC International and COSCO SHIPPING 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 SITC International with a short position of COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and COSCO SHIPPING.
Diversification Opportunities for SITC International and COSCO SHIPPING
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SITC and COSCO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings and COSCO SHIPPING Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Energy and SITC International 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 SITC International Holdings are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Energy has no effect on the direction of SITC International i.e., SITC International and COSCO SHIPPING go up and down completely randomly.
Pair Corralation between SITC International and COSCO SHIPPING
Assuming the 90 days horizon SITC International is expected to generate 1.11 times less return on investment than COSCO SHIPPING. But when comparing it to its historical volatility, SITC International Holdings is 1.36 times less risky than COSCO SHIPPING. It trades about 0.13 of its potential returns per unit of risk. COSCO SHIPPING Energy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 82.00 in COSCO SHIPPING Energy on July 27, 2025 and sell it today you would earn a total of 24.00 from holding COSCO SHIPPING Energy or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SITC International Holdings vs. COSCO SHIPPING Energy
Performance |
| Timeline |
| SITC International |
| COSCO SHIPPING Energy |
SITC International and COSCO SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITC International and COSCO SHIPPING
The main advantage of trading using opposite SITC International and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.| SITC International vs. Kawasaki Kisen Kaisha | SITC International vs. COSCO SHIPPING Energy | SITC International vs. Mitsui OSK Lines | SITC International vs. Orient Overseas International |
| COSCO SHIPPING vs. SITC International Holdings | COSCO SHIPPING vs. SITC International Holdings | COSCO SHIPPING vs. Kawasaki Kisen Kaisha | COSCO SHIPPING vs. China Merchants Port |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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