Correlation Between CICC Fund and ZTE Corp
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By analyzing existing cross correlation between CICC Fund Management and ZTE Corp, you can compare the effects of market volatilities on CICC Fund and ZTE Corp 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 ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and ZTE Corp.
Diversification Opportunities for CICC Fund and ZTE Corp
Poor diversification
The 3 months correlation between CICC and ZTE is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp 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 ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of CICC Fund i.e., CICC Fund and ZTE Corp go up and down completely randomly.
Pair Corralation between CICC Fund and ZTE Corp
Assuming the 90 days trading horizon CICC Fund is expected to generate 1.54 times less return on investment than ZTE Corp. But when comparing it to its historical volatility, CICC Fund Management is 3.39 times less risky than ZTE Corp. It trades about 0.09 of its potential returns per unit of risk. ZTE Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,637 in ZTE Corp on October 11, 2024 and sell it today you would earn a total of 1,200 from holding ZTE Corp or generate 45.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
CICC Fund Management vs. ZTE Corp
Performance |
| Timeline |
| CICC Fund Management |
| ZTE Corp |
CICC Fund and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and ZTE Corp
The main advantage of trading using opposite CICC Fund and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| CICC Fund vs. Guangzhou Ruoyuchen Information | CICC Fund vs. Sharetronic Data Technology | CICC Fund vs. Emdoor Information Co | CICC Fund vs. Shenzhen SDG Information |
| ZTE Corp vs. Eit Environmental Development | ZTE Corp vs. Linewell Software Co | ZTE Corp vs. Yingde Greatchem Chemicals | ZTE Corp vs. Guangdong Liantai Environmental |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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