Correlation Between CICC Fund and Hainan Mining
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By analyzing existing cross correlation between CICC Fund Management and Hainan Mining Co, you can compare the effects of market volatilities on CICC Fund and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Hainan Mining.
Diversification Opportunities for CICC Fund and Hainan Mining
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CICC and Hainan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of CICC Fund i.e., CICC Fund and Hainan Mining go up and down completely randomly.
Pair Corralation between CICC Fund and Hainan Mining
Assuming the 90 days trading horizon CICC Fund Management is expected to generate 0.38 times more return on investment than Hainan Mining. However, CICC Fund Management is 2.61 times less risky than Hainan Mining. It trades about 0.27 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.08 per unit of risk. If you would invest 312.00 in CICC Fund Management on August 31, 2024 and sell it today you would earn a total of 14.00 from holding CICC Fund Management or generate 4.49% 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. Hainan Mining Co
Performance |
| Timeline |
| CICC Fund Management |
| Hainan Mining |
CICC Fund and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICC Fund and Hainan Mining
The main advantage of trading using opposite CICC Fund and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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