Correlation Between Shandong Homey and CICC Fund
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By analyzing existing cross correlation between Shandong Homey Aquatic and CICC Fund Management, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and CICC Fund.
Diversification Opportunities for Shandong Homey and CICC Fund
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and CICC is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and CICC Fund go up and down completely randomly.
Pair Corralation between Shandong Homey and CICC Fund
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 3.23 times more return on investment than CICC Fund. However, Shandong Homey is 3.23 times more volatile than CICC Fund Management. It trades about 0.21 of its potential returns per unit of risk. CICC Fund Management is currently generating about 0.31 per unit of risk. If you would invest 261.00 in Shandong Homey Aquatic on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Shandong Homey Aquatic or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. CICC Fund Management
Performance |
| Timeline |
| Shandong Homey Aquatic |
| CICC Fund Management |
Shandong Homey and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and CICC Fund
The main advantage of trading using opposite Shandong Homey and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Nanjing Putian Telecommunications | Shandong Homey vs. Tianjin Realty Development | Shandong Homey vs. Kangyue Technology Co | Shandong Homey vs. Shenzhen Hifuture Electric |
| CICC Fund vs. Kweichow Moutai Co | CICC Fund vs. Agricultural Bank of | CICC Fund vs. China Mobile Limited | CICC Fund vs. China Construction Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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