Correlation Between CICC Fund and PetroChina
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By analyzing existing cross correlation between CICC Fund Management and PetroChina Co Ltd, you can compare the effects of market volatilities on CICC Fund and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and PetroChina.
Diversification Opportunities for CICC Fund and PetroChina
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICC and PetroChina is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of CICC Fund i.e., CICC Fund and PetroChina go up and down completely randomly.
Pair Corralation between CICC Fund and PetroChina
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.8 times more return on investment than PetroChina. However, CICC Fund Management is 1.25 times less risky than PetroChina. It trades about 0.34 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.02 per unit of risk. If you would invest 312.00 in CICC Fund Management on November 6, 2024 and sell it today you would earn a total of 78.00 from holding CICC Fund Management or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICC Fund Management vs. PetroChina Co Ltd
Performance |
| Timeline |
| CICC Fund Management |
| PetroChina |
CICC Fund and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and PetroChina
The main advantage of trading using opposite CICC Fund and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| CICC Fund vs. Beijing Baolande Software | CICC Fund vs. Linkage Software Co | CICC Fund vs. Union Semiconductor Co | CICC Fund vs. Ingenic Semiconductor |
| PetroChina vs. China Publishing Media | PetroChina vs. Ningbo MedicalSystem Biotechnology | PetroChina vs. Southern PublishingMedia Co | PetroChina vs. Duzhe Publishing Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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