Correlation Between Ford and CICC Fund
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and CICC Fund Management, you can compare the effects of market volatilities on Ford 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 Ford with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CICC Fund.
Diversification Opportunities for Ford and CICC Fund
Significant diversification
The 3 months correlation between Ford and CICC is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and CICC Fund go up and down completely randomly.
Pair Corralation between Ford and CICC Fund
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.89 times more return on investment than CICC Fund. However, Ford is 2.89 times more volatile than CICC Fund Management. It trades about 0.01 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 1,132 in Ford Motor on August 25, 2024 and sell it today you would lose (14.00) from holding Ford Motor or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.18% |
| Values | Daily Returns |
Ford Motor vs. CICC Fund Management
Performance |
| Timeline |
| Ford Motor |
| CICC Fund Management |
Ford and CICC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CICC Fund
The main advantage of trading using opposite Ford and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and CICC Fund Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |