Correlation Between CICC Fund and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between CICC Fund Management and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on CICC Fund and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Fiberhome Telecommunicatio.
Diversification Opportunities for CICC Fund and Fiberhome Telecommunicatio
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CICC and Fiberhome is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of CICC Fund i.e., CICC Fund and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between CICC Fund and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.43 times more return on investment than Fiberhome Telecommunicatio. However, CICC Fund Management is 2.3 times less risky than Fiberhome Telecommunicatio. It trades about 0.35 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 per unit of risk. If you would invest 327.00 in CICC Fund Management on October 30, 2024 and sell it today you would earn a total of 63.00 from holding CICC Fund Management or generate 19.27% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| CICC Fund Management |
| Fiberhome Telecommunicatio |
CICC Fund and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Fiberhome Telecommunicatio
The main advantage of trading using opposite CICC Fund and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| CICC Fund vs. Industrial and Commercial | CICC Fund vs. Kweichow Moutai Co | CICC Fund vs. Agricultural Bank of | CICC Fund vs. China Mobile Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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