Correlation Between CICC Fund and Dow Jones
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By analyzing existing cross correlation between CICC Fund Management and Dow Jones Industrial, you can compare the effects of market volatilities on CICC Fund and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICC Fund and Dow Jones.
Diversification Opportunities for CICC Fund and Dow Jones
Very good diversification
The 3 months correlation between CICC and Dow is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CICC Fund Management and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of CICC Fund i.e., CICC Fund and Dow Jones go up and down completely randomly.
Pair Corralation between CICC Fund and Dow Jones
Assuming the 90 days trading horizon CICC Fund is expected to generate 2.0 times less return on investment than Dow Jones. But when comparing it to its historical volatility, CICC Fund Management is 1.28 times less risky than Dow Jones. It trades about 0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% 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. Dow Jones Industrial
Performance |
| Timeline |
CICC Fund and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CICC Fund Management
Pair trading matchups for CICC Fund
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CICC Fund and Dow Jones
The main advantage of trading using opposite CICC Fund and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICC Fund position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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