Correlation Between CICC Fund and Ningbo Ligong
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By analyzing existing cross correlation between CICC Fund Management and Ningbo Ligong Online, you can compare the effects of market volatilities on CICC Fund and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Ningbo Ligong.
Diversification Opportunities for CICC Fund and Ningbo Ligong
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CICC and Ningbo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of CICC Fund i.e., CICC Fund and Ningbo Ligong go up and down completely randomly.
Pair Corralation between CICC Fund and Ningbo Ligong
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.67 times more return on investment than Ningbo Ligong. However, CICC Fund Management is 1.5 times less risky than Ningbo Ligong. It trades about 0.31 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.11 per unit of risk. If you would invest 327.00 in CICC Fund Management on September 13, 2024 and sell it today you would earn a total of 26.00 from holding CICC Fund Management or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CICC Fund Management vs. Ningbo Ligong Online
Performance |
| Timeline |
| CICC Fund Management |
| Ningbo Ligong Online |
CICC Fund and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Ningbo Ligong
The main advantage of trading using opposite CICC Fund and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| CICC Fund vs. Kweichow Moutai Co | CICC Fund vs. Agricultural Bank of | CICC Fund vs. China Mobile Limited | CICC Fund vs. China Construction Bank |
| Ningbo Ligong vs. China Petroleum Chemical | Ningbo Ligong vs. PetroChina Co Ltd | Ningbo Ligong vs. China State Construction | Ningbo Ligong vs. China Railway Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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