Correlation Between Bus Online and CICC Fund
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By analyzing existing cross correlation between Bus Online Co and CICC Fund Management, you can compare the effects of market volatilities on Bus Online 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 Bus Online with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and CICC Fund.
Diversification Opportunities for Bus Online and CICC Fund
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bus and CICC is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co 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 Bus Online 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 Bus Online Co 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 Bus Online i.e., Bus Online and CICC Fund go up and down completely randomly.
Pair Corralation between Bus Online and CICC Fund
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the CICC Fund. In addition to that, Bus Online is 3.47 times more volatile than CICC Fund Management. It trades about 0.0 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.01 per unit of volatility. If you would invest 322.00 in CICC Fund Management on August 29, 2024 and sell it today you would earn a total of 1.00 from holding CICC Fund Management or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. CICC Fund Management
Performance |
| Timeline |
| Bus Online |
| CICC Fund Management |
Bus Online and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and CICC Fund
The main advantage of trading using opposite Bus Online and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online 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.| Bus Online vs. China State Construction | Bus Online vs. Huafa Industrial Co | Bus Online vs. China International Capital | Bus Online vs. Kweichow Moutai Co |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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