Correlation Between Cicc Fund and Huaxia Fund
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By analyzing existing cross correlation between Cicc Fund Management and Huaxia Fund Management, you can compare the effects of market volatilities on Cicc Fund and Huaxia 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 Cicc Fund with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicc Fund and Huaxia Fund.
Diversification Opportunities for Cicc Fund and Huaxia Fund
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cicc and Huaxia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Cicc Fund i.e., Cicc Fund and Huaxia Fund go up and down completely randomly.
Pair Corralation between Cicc Fund and Huaxia Fund
Assuming the 90 days trading horizon Cicc Fund is expected to generate 1.08 times less return on investment than Huaxia Fund. But when comparing it to its historical volatility, Cicc Fund Management is 1.16 times less risky than Huaxia Fund. It trades about 0.35 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 288.00 in Huaxia Fund Management on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Huaxia Fund Management or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicc Fund Management vs. Huaxia Fund Management
Performance |
| Timeline |
| Cicc Fund Management |
| Huaxia Fund Management |
Cicc Fund and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicc Fund and Huaxia Fund
The main advantage of trading using opposite Cicc Fund and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicc Fund position performs unexpectedly, Huaxia 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.| Cicc Fund vs. Industrial and Commercial | Cicc Fund vs. Kweichow Moutai Co | Cicc Fund vs. Agricultural Bank of | Cicc Fund vs. China Mobile Limited |
| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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