Correlation Between CICC Fund and Guangzhou Dongfang
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By analyzing existing cross correlation between CICC Fund Management and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on CICC Fund and Guangzhou Dongfang 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 Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Guangzhou Dongfang.
Diversification Opportunities for CICC Fund and Guangzhou Dongfang
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CICC and Guangzhou is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel 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 Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of CICC Fund i.e., CICC Fund and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between CICC Fund and Guangzhou Dongfang
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.46 times more return on investment than Guangzhou Dongfang. However, CICC Fund Management is 2.19 times less risky than Guangzhou Dongfang. It trades about 0.4 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.16 per unit of risk. If you would invest 343.00 in CICC Fund Management on October 11, 2024 and sell it today you would earn a total of 43.00 from holding CICC Fund Management or generate 12.54% 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. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| CICC Fund Management |
| Guangzhou Dongfang Hotel |
CICC Fund and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Guangzhou Dongfang
The main advantage of trading using opposite CICC Fund and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Guangzhou Dongfang 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 Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| CICC Fund vs. CITIC Metal Co | CICC Fund vs. Zoje Resources Investment | CICC Fund vs. ZYF Lopsking Aluminum | CICC Fund vs. Rising Nonferrous Metals |
| Guangzhou Dongfang vs. Shaanxi Meineng Clean | Guangzhou Dongfang vs. Rongcheer Industrial Technology | Guangzhou Dongfang vs. Western Metal Materials | Guangzhou Dongfang vs. Minmetals Capital 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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