Correlation Between Huaxia Fund and CICC Fund
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By analyzing existing cross correlation between Huaxia Fund Management and CICC Fund Management, you can compare the effects of market volatilities on Huaxia Fund and CICC Fund 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 Huaxia Fund with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and CICC Fund.
Diversification Opportunities for Huaxia Fund and CICC Fund
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Huaxia and CICC is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and CICC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICC Fund Management and Huaxia 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 Huaxia Fund Management are associated (or correlated) with CICC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICC Fund Management has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and CICC Fund go up and down completely randomly.
Pair Corralation between Huaxia Fund and CICC Fund
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 1.41 times more return on investment than CICC Fund. However, Huaxia Fund is 1.41 times more volatile than CICC Fund Management. It trades about 0.1 of its potential returns per unit of risk. CICC Fund Management is currently generating about 0.14 per unit of risk. If you would invest 303.00 in Huaxia Fund Management on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Huaxia Fund Management or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. CICC Fund Management
Performance |
| Timeline |
| Huaxia Fund Management |
| CICC Fund Management |
Huaxia Fund and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and CICC Fund
The main advantage of trading using opposite Huaxia Fund and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, CICC Fund 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 CICC Fund will offset losses from the drop in CICC Fund's long position.| Huaxia Fund vs. Jiangsu Financial Leasing | Huaxia Fund vs. Guosheng Financial Holding | Huaxia Fund vs. Giantec Semiconductor Corp | Huaxia Fund vs. Lecron Energy Saving |
| CICC Fund vs. Industrial and Commercial | CICC Fund vs. Kweichow Moutai Co | CICC Fund vs. Agricultural Bank of | CICC Fund vs. China Mobile Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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