Correlation Between Cicc Fund and Guangzhou Automobile
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By analyzing existing cross correlation between Cicc Fund Management and Guangzhou Automobile Group, you can compare the effects of market volatilities on Cicc Fund and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicc Fund and Guangzhou Automobile.
Diversification Opportunities for Cicc Fund and Guangzhou Automobile
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cicc and Guangzhou is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Cicc Fund i.e., Cicc Fund and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Cicc Fund and Guangzhou Automobile
Assuming the 90 days trading horizon Cicc Fund Management is expected to under-perform the Guangzhou Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Cicc Fund Management is 5.2 times less risky than Guangzhou Automobile. The stock trades about -0.36 of its potential returns per unit of risk. The Guangzhou Automobile Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 799.00 in Guangzhou Automobile Group on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Guangzhou Automobile Group or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicc Fund Management vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Cicc Fund Management |
| Guangzhou Automobile |
Cicc Fund and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicc Fund and Guangzhou Automobile
The main advantage of trading using opposite Cicc Fund and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicc Fund position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile'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 |
| Guangzhou Automobile vs. Anhui Huaren Health | Guangzhou Automobile vs. Shanghai Broadband Technology | Guangzhou Automobile vs. Healthcare Co | Guangzhou Automobile vs. Dezhan HealthCare Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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