Correlation Between Guangdong Shenglu and CICC Fund
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and CICC Fund Management, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and CICC Fund.
Diversification Opportunities for Guangdong Shenglu and CICC Fund
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and CICC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and CICC Fund go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and CICC Fund
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the CICC Fund. In addition to that, Guangdong Shenglu is 3.48 times more volatile than CICC Fund Management. It trades about -0.26 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.29 per unit of volatility. If you would invest 370.00 in CICC Fund Management on October 30, 2024 and sell it today you would earn a total of 20.00 from holding CICC Fund Management or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. CICC Fund Management
Performance |
| Timeline |
| Guangdong Shenglu |
| CICC Fund Management |
Guangdong Shenglu and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and CICC Fund
The main advantage of trading using opposite Guangdong Shenglu and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Jiangsu Yueda Investment | Guangdong Shenglu vs. Shandong Longquan Pipeline | Guangdong Shenglu vs. Zoje Resources Investment | Guangdong Shenglu vs. Zhejiang Kingland Pipeline |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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