Correlation Between CICC Fund and China Mobile
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By analyzing existing cross correlation between CICC Fund Management and China Mobile Limited, you can compare the effects of market volatilities on CICC Fund and China Mobile 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 Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and China Mobile.
Diversification Opportunities for CICC Fund and China Mobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CICC and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of CICC Fund i.e., CICC Fund and China Mobile go up and down completely randomly.
Pair Corralation between CICC Fund and China Mobile
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.66 times more return on investment than China Mobile. However, CICC Fund Management is 1.52 times less risky than China Mobile. It trades about 0.12 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.03 per unit of risk. If you would invest 266.00 in CICC Fund Management on October 16, 2024 and sell it today you would earn a total of 114.00 from holding CICC Fund Management or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. China Mobile Limited
Performance |
| Timeline |
| CICC Fund Management |
| China Mobile Limited |
CICC Fund and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and China Mobile
The main advantage of trading using opposite CICC Fund and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, China Mobile 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 Mobile will offset losses from the drop in China Mobile's long position.| CICC Fund vs. Xiangyang Automobile Bearing | CICC Fund vs. Guangzhou Restaurants Group | CICC Fund vs. Guangdong Shenglu Telecommunication | CICC Fund vs. Emdoor Information Co |
| China Mobile vs. Shanghai Material Trading | China Mobile vs. ButOne Information Corp | China Mobile vs. Hygon Information Technology | China Mobile vs. Zhongfu Information |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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