Correlation Between Suzhou Weizhixiang and CICC Fund
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and CICC Fund Management, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and CICC Fund.
Diversification Opportunities for Suzhou Weizhixiang and CICC Fund
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and CICC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and CICC Fund go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and CICC Fund
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the CICC Fund. In addition to that, Suzhou Weizhixiang is 3.26 times more volatile than CICC Fund Management. It trades about -0.04 of its total potential returns per unit of risk. CICC Fund Management is currently generating about 0.09 per unit of volatility. If you would invest 274.00 in CICC Fund Management on October 16, 2024 and sell it today you would earn a total of 112.00 from holding CICC Fund Management or generate 40.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. CICC Fund Management
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| CICC Fund Management |
Suzhou Weizhixiang and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and CICC Fund
The main advantage of trading using opposite Suzhou Weizhixiang and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Jinhui Mining Co | Suzhou Weizhixiang vs. Pengxin International Mining | Suzhou Weizhixiang vs. Shandong Longquan Pipeline | Suzhou Weizhixiang vs. Vats Liquor Chain |
| CICC Fund vs. Nanjing OLO Home | CICC Fund vs. Suzhou Weizhixiang Food | CICC Fund vs. DO Home Collection | CICC Fund vs. Jiajia Food Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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