Correlation Between CICC Fund and China Asset
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By analyzing existing cross correlation between CICC Fund Management and China Asset Management, you can compare the effects of market volatilities on CICC Fund and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and China Asset.
Diversification Opportunities for CICC Fund and China Asset
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CICC and China is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of CICC Fund i.e., CICC Fund and China Asset go up and down completely randomly.
Pair Corralation between CICC Fund and China Asset
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 1.07 times more return on investment than China Asset. However, CICC Fund is 1.07 times more volatile than China Asset Management. It trades about 0.3 of its potential returns per unit of risk. China Asset Management is currently generating about 0.29 per unit of risk. If you would invest 314.00 in CICC Fund Management on October 15, 2024 and sell it today you would earn a total of 72.00 from holding CICC Fund Management or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. China Asset Management
Performance |
| Timeline |
| CICC Fund Management |
| China Asset Management |
CICC Fund and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and China Asset
The main advantage of trading using opposite CICC Fund and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| CICC Fund vs. Nanjing OLO Home | CICC Fund vs. Suzhou Weizhixiang Food | CICC Fund vs. DO Home Collection | CICC Fund vs. Jiajia Food Group |
| China Asset vs. Industrial Bank Co | China Asset vs. Guosheng Financial Holding | China Asset vs. Agricultural Bank of | China Asset vs. Shenwu Energy Saving |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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