Correlation Between Guangzhou Restaurants and CICC Fund
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By analyzing existing cross correlation between Guangzhou Restaurants Group and CICC Fund Management, you can compare the effects of market volatilities on Guangzhou Restaurants 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 Guangzhou Restaurants with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Restaurants and CICC Fund.
Diversification Opportunities for Guangzhou Restaurants and CICC Fund
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangzhou and CICC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Restaurants Group 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 Guangzhou Restaurants 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 Guangzhou Restaurants Group 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 Guangzhou Restaurants i.e., Guangzhou Restaurants and CICC Fund go up and down completely randomly.
Pair Corralation between Guangzhou Restaurants and CICC Fund
Assuming the 90 days trading horizon Guangzhou Restaurants Group is expected to under-perform the CICC Fund. In addition to that, Guangzhou Restaurants is 1.88 times more volatile than CICC Fund Management. It trades about -0.43 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.16 per unit of volatility. If you would invest 369.00 in CICC Fund Management on October 17, 2024 and sell it today you would earn a total of 11.00 from holding CICC Fund Management or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Restaurants Group vs. CICC Fund Management
Performance |
| Timeline |
| Guangzhou Restaurants |
| CICC Fund Management |
Guangzhou Restaurants and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Restaurants and CICC Fund
The main advantage of trading using opposite Guangzhou Restaurants and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Restaurants 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.| Guangzhou Restaurants vs. Shantou Wanshun Package | Guangzhou Restaurants vs. Rising Nonferrous Metals | Guangzhou Restaurants vs. Shanghai Yanpu Metal | Guangzhou Restaurants vs. Ye Chiu Metal |
| CICC Fund vs. Xiangyang Automobile Bearing | CICC Fund vs. Guangzhou Restaurants Group | CICC Fund vs. Guangdong Shenglu Telecommunication | CICC Fund vs. Emdoor Information Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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