Correlation Between Xiangyang Automobile and CICC Fund
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyang Automobile Bearing and CICC Fund Management, you can compare the effects of market volatilities on Xiangyang Automobile 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 Xiangyang Automobile with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and CICC Fund.
Diversification Opportunities for Xiangyang Automobile and CICC Fund
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and CICC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing 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 Xiangyang Automobile 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and CICC Fund go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and CICC Fund
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the CICC Fund. In addition to that, Xiangyang Automobile is 5.83 times more volatile than CICC Fund Management. It trades about -0.09 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.16 per unit of volatility. If you would invest 369.00 in CICC Fund Management on October 17, 2024 and sell it today you would earn a total of 11.00 from holding CICC Fund Management or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. CICC Fund Management
Performance |
| Timeline |
| Xiangyang Automobile |
| CICC Fund Management |
Xiangyang Automobile and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and CICC Fund
The main advantage of trading using opposite Xiangyang Automobile and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile 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.The idea behind Xiangyang Automobile Bearing and CICC Fund Management 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.
| CICC Fund vs. Xiangyang Automobile Bearing | CICC Fund vs. Guangzhou Restaurants Group | CICC Fund vs. Guangdong Shenglu Telecommunication | CICC Fund vs. Emdoor Information Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |