Correlation Between Shanghai 2345 and CICC Fund

Can any of the company-specific risk be diversified away by investing in both Shanghai 2345 and CICC Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shanghai 2345 and CICC Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shanghai 2345 Network and CICC Fund Management, you can compare the effects of market volatilities on Shanghai 2345 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 Shanghai 2345 with a short position of CICC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai 2345 and CICC Fund.

Diversification Opportunities for Shanghai 2345 and CICC Fund

0.0

Correlation Coefficient

Shanghai 2345  CICC Fund

Pay attention - limited upside

The 3 months correlation between Shanghai and CICC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai 2345 Network 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 Shanghai 2345 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 Shanghai 2345 Network 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 Shanghai 2345 i.e., Shanghai 2345 and CICC Fund go up and down completely randomly.

Pair Corralation between Shanghai 2345 and CICC Fund

If you would invest  330.00  in CICC Fund Management on October 4, 2024 and sell it today you would earn a total of  38.00  from holding CICC Fund Management or generate 11.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Shanghai 2345 Network  vs.  CICC Fund Management

Shanghai 2345 Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shanghai 2345 Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shanghai 2345 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CICC Fund Management

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CICC Fund Management are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CICC Fund sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shanghai 2345 and CICC Fund

The main advantage of trading using opposite Shanghai 2345 and CICC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai 2345 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 Shanghai 2345 Network 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.