Correlation Between Focus Media and CICC Fund
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By analyzing existing cross correlation between Focus Media Information and CICC Fund Management, you can compare the effects of market volatilities on Focus Media 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 Focus Media with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and CICC Fund.
Diversification Opportunities for Focus Media and CICC Fund
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and CICC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media 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 Focus Media 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 Focus Media 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 Focus Media i.e., Focus Media and CICC Fund go up and down completely randomly.
Pair Corralation between Focus Media and CICC Fund
Assuming the 90 days trading horizon Focus Media Information is expected to generate 2.66 times more return on investment than CICC Fund. However, Focus Media is 2.66 times more volatile than CICC Fund Management. It trades about 0.06 of its potential returns per unit of risk. CICC Fund Management is currently generating about 0.15 per unit of risk. If you would invest 609.00 in Focus Media Information on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Focus Media Information or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. CICC Fund Management
Performance |
| Timeline |
| Focus Media Information |
| CICC Fund Management |
Focus Media and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and CICC Fund
The main advantage of trading using opposite Focus Media and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media 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.| Focus Media vs. Agricultural Bank of | Focus Media vs. China Construction Bank | Focus Media vs. Postal Savings Bank | Focus Media vs. Bank of Communications |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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