Correlation Between Cicc Fund and Beijing Bewinner
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By analyzing existing cross correlation between Cicc Fund Management and Beijing Bewinner Communications, you can compare the effects of market volatilities on Cicc Fund and Beijing Bewinner 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 Cicc Fund with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicc Fund and Beijing Bewinner.
Diversification Opportunities for Cicc Fund and Beijing Bewinner
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cicc and Beijing is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Cicc Fund 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 Cicc Fund Management are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Cicc Fund i.e., Cicc Fund and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Cicc Fund and Beijing Bewinner
Assuming the 90 days trading horizon Cicc Fund is expected to generate 5.56 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Cicc Fund Management is 4.27 times less risky than Beijing Bewinner. It trades about 0.04 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Beijing Bewinner Communications on November 7, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Bewinner Communications or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicc Fund Management vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Cicc Fund Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Beijing Bewinner Com |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Cicc Fund and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicc Fund and Beijing Bewinner
The main advantage of trading using opposite Cicc Fund and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicc Fund position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.The idea behind Cicc Fund Management and Beijing Bewinner Communications 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.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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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