Correlation Between Rising Nonferrous and CICC Fund
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By analyzing existing cross correlation between Rising Nonferrous Metals and CICC Fund Management, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and CICC Fund.
Diversification Opportunities for Rising Nonferrous and CICC Fund
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rising and CICC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals 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 Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and CICC Fund go up and down completely randomly.
Pair Corralation between Rising Nonferrous and CICC Fund
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the CICC Fund. In addition to that, Rising Nonferrous is 2.82 times more volatile than CICC Fund Management. It trades about -0.01 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.07 per unit of volatility. If you would invest 261.00 in CICC Fund Management on August 29, 2024 and sell it today you would earn a total of 62.00 from holding CICC Fund Management or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. CICC Fund Management
Performance |
| Timeline |
| Rising Nonferrous Metals |
| CICC Fund Management |
Rising Nonferrous and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and CICC Fund
The main advantage of trading using opposite Rising Nonferrous and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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