Correlation Between Weihai Honglin and Cicc Fund
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By analyzing existing cross correlation between Weihai Honglin Electronic and Cicc Fund Management, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Cicc Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Cicc Fund.
Diversification Opportunities for Weihai Honglin and Cicc Fund
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Weihai and Cicc is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Cicc Fund go up and down completely randomly.
Pair Corralation between Weihai Honglin and Cicc Fund
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 4.03 times more return on investment than Cicc Fund. However, Weihai Honglin is 4.03 times more volatile than Cicc Fund Management. It trades about 0.31 of its potential returns per unit of risk. Cicc Fund Management is currently generating about 0.35 per unit of risk. If you would invest 1,385 in Weihai Honglin Electronic on October 25, 2024 and sell it today you would earn a total of 370.00 from holding Weihai Honglin Electronic or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Cicc Fund Management
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Cicc Fund Management |
Weihai Honglin and Cicc Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Cicc Fund
The main advantage of trading using opposite Weihai Honglin and Cicc Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Contemporary Amperex Technology | Weihai Honglin vs. Beijing Roborock Technology | Weihai Honglin vs. BYD Co Ltd |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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