Correlation Between Shenzhen SDG and CICC Fund
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By analyzing existing cross correlation between Shenzhen SDG Information and CICC Fund Management, you can compare the effects of market volatilities on Shenzhen SDG and CICC Fund 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 Shenzhen SDG with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and CICC Fund.
Diversification Opportunities for Shenzhen SDG and CICC Fund
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and CICC is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and CICC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICC Fund Management and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with CICC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICC Fund Management has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and CICC Fund go up and down completely randomly.
Pair Corralation between Shenzhen SDG and CICC Fund
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the CICC Fund. In addition to that, Shenzhen SDG is 2.76 times more volatile than CICC Fund Management. It trades about -0.06 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.35 per unit of volatility. If you would invest 365.00 in CICC Fund Management on October 26, 2024 and sell it today you would earn a total of 25.00 from holding CICC Fund Management or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. CICC Fund Management
Performance |
| Timeline |
| Shenzhen SDG Information |
| CICC Fund Management |
Shenzhen SDG and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and CICC Fund
The main advantage of trading using opposite Shenzhen SDG and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, CICC Fund 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 CICC Fund will offset losses from the drop in CICC Fund's long position.| Shenzhen SDG vs. Bus Online Co | Shenzhen SDG vs. Holitech Technology Co | Shenzhen SDG vs. Gome Telecom Equipment | Shenzhen SDG vs. Cultural Investment Holdings |
| CICC Fund vs. Industrial and Commercial | CICC Fund vs. Kweichow Moutai Co | CICC Fund vs. Agricultural Bank of | CICC Fund vs. China Mobile Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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