Correlation Between Threes Company and CICC Fund
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By analyzing existing cross correlation between Threes Company Media and CICC Fund Management, you can compare the effects of market volatilities on Threes Company 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 Threes Company with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and CICC Fund.
Diversification Opportunities for Threes Company and CICC Fund
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Threes and CICC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media 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 Threes Company 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 Threes Company Media 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 Threes Company i.e., Threes Company and CICC Fund go up and down completely randomly.
Pair Corralation between Threes Company and CICC Fund
Assuming the 90 days trading horizon Threes Company Media is expected to generate 3.92 times more return on investment than CICC Fund. However, Threes Company is 3.92 times more volatile than CICC Fund Management. It trades about 0.1 of its potential returns per unit of risk. CICC Fund Management is currently generating about 0.18 per unit of risk. If you would invest 2,380 in Threes Company Media on October 18, 2024 and sell it today you would earn a total of 758.00 from holding Threes Company Media or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. CICC Fund Management
Performance |
| Timeline |
| Threes Company |
| CICC Fund Management |
Threes Company and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and CICC Fund
The main advantage of trading using opposite Threes Company and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company 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.| Threes Company vs. Dongguan Tarry Electronics | Threes Company vs. Nantong Haixing Electronics | Threes Company vs. Epoxy Base Electronic | Threes Company vs. Weihai Honglin Electronic |
| CICC Fund vs. Beijing Enlight Media | CICC Fund vs. Threes Company Media | CICC Fund vs. Huayi Brothers Media | CICC Fund vs. Yili Chuanning Biotechnology |
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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