Correlation Between CICC Fund and Hubei Xingfa
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By analyzing existing cross correlation between CICC Fund Management and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on CICC Fund and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Hubei Xingfa.
Diversification Opportunities for CICC Fund and Hubei Xingfa
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CICC and Hubei is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of CICC Fund i.e., CICC Fund and Hubei Xingfa go up and down completely randomly.
Pair Corralation between CICC Fund and Hubei Xingfa
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.52 times more return on investment than Hubei Xingfa. However, CICC Fund Management is 1.94 times less risky than Hubei Xingfa. It trades about 0.3 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.17 per unit of risk. If you would invest 320.00 in CICC Fund Management on September 12, 2024 and sell it today you would earn a total of 23.00 from holding CICC Fund Management or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| CICC Fund Management |
| Hubei Xingfa Chemicals |
CICC Fund and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Hubei Xingfa
The main advantage of trading using opposite CICC Fund and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa'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 |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Rongsheng Petrochemical 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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