Correlation Between CICC Fund and New China
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By analyzing existing cross correlation between CICC Fund Management and New China Life, you can compare the effects of market volatilities on CICC Fund and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and New China.
Diversification Opportunities for CICC Fund and New China
Very good diversification
The 3 months correlation between CICC and New is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of CICC Fund i.e., CICC Fund and New China go up and down completely randomly.
Pair Corralation between CICC Fund and New China
Assuming the 90 days trading horizon CICC Fund is expected to generate 2.04 times less return on investment than New China. But when comparing it to its historical volatility, CICC Fund Management is 2.8 times less risky than New China. It trades about 0.08 of its potential returns per unit of risk. New China Life is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,005 in New China Life on November 27, 2024 and sell it today you would earn a total of 2,123 from holding New China Life or generate 70.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. New China Life
Performance |
| Timeline |
| CICC Fund Management |
| New China Life |
CICC Fund and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and New China
The main advantage of trading using opposite CICC Fund and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| CICC Fund vs. Jason Furniture | CICC Fund vs. Chengdu B ray Media | CICC Fund vs. Duzhe Publishing Media | CICC Fund vs. Sichuan Newsnet Media |
| New China vs. JiShi Media Co | New China vs. Chengtun Mining Group | New China vs. Chengdu B ray Media | New China vs. Wasu Media Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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