Correlation Between CICC Fund and Dalian Thermal
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By analyzing existing cross correlation between CICC Fund Management and Dalian Thermal Power, you can compare the effects of market volatilities on CICC Fund and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Dalian Thermal.
Diversification Opportunities for CICC Fund and Dalian Thermal
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CICC and Dalian is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of CICC Fund i.e., CICC Fund and Dalian Thermal go up and down completely randomly.
Pair Corralation between CICC Fund and Dalian Thermal
Assuming the 90 days trading horizon CICC Fund is expected to generate 2.75 times less return on investment than Dalian Thermal. But when comparing it to its historical volatility, CICC Fund Management is 3.56 times less risky than Dalian Thermal. It trades about 0.31 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 645.00 in Dalian Thermal Power on December 26, 2024 and sell it today you would earn a total of 76.00 from holding Dalian Thermal Power or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. Dalian Thermal Power
Performance |
| Timeline |
| CICC Fund Management |
| Dalian Thermal Power |
CICC Fund and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Dalian Thermal
The main advantage of trading using opposite CICC Fund and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| CICC Fund vs. Qijing Machinery | CICC Fund vs. Epoxy Base Electronic | CICC Fund vs. Sanxiang Advanced Materials | CICC Fund vs. Guangdong Jinming Machinery |
| Dalian Thermal vs. Eastroc Beverage Group | Dalian Thermal vs. Beijing Bewinner Communications | Dalian Thermal vs. Changchun Engley Automobile | Dalian Thermal vs. Guangzhou Haige Communications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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