Correlation Between China Mobile and CICC Fund
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By analyzing existing cross correlation between China Mobile Limited and CICC Fund Management, you can compare the effects of market volatilities on China Mobile 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 China Mobile with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and CICC Fund.
Diversification Opportunities for China Mobile and CICC Fund
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and CICC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited 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 China Mobile 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 China Mobile Limited 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 China Mobile i.e., China Mobile and CICC Fund go up and down completely randomly.
Pair Corralation between China Mobile and CICC Fund
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 2.25 times more return on investment than CICC Fund. However, China Mobile is 2.25 times more volatile than CICC Fund Management. It trades about 0.06 of its potential returns per unit of risk. CICC Fund Management is currently generating about 0.02 per unit of risk. If you would invest 7,050 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 3,492 from holding China Mobile Limited or generate 49.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. CICC Fund Management
Performance |
| Timeline |
| China Mobile Limited |
| CICC Fund Management |
China Mobile and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and CICC Fund
The main advantage of trading using opposite China Mobile and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. Aluminum Corp of |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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