Correlation Between Cicc Fund and Soyea Technology

Can any of the company-specific risk be diversified away by investing in both Cicc Fund and Soyea Technology 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 Cicc Fund and Soyea Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Cicc Fund and Soyea Technology

0.63

Correlation Coefficient

Cicc Fund  Soyea Technology

Poor diversification

The 3 months correlation between Cicc and Soyea is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology and Cicc Fund 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 Cicc Fund Management are associated (or correlated) with Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Cicc Fund i.e., Cicc Fund and Soyea Technology go up and down completely randomly.

Pair Corralation between Cicc Fund and Soyea Technology

Assuming the 90 days trading horizon Cicc Fund Management is expected to generate 0.43 times more return on investment than Soyea Technology. However, Cicc Fund Management is 2.31 times less risky than Soyea Technology. It trades about 0.19 of its potential returns per unit of risk. Soyea Technology Co is currently generating about 0.06 per unit of risk. If you would invest  230.00  in Cicc Fund Management on December 25, 2024 and sell it today you would earn a total of  26.00  from holding Cicc Fund Management or generate 11.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cicc Fund Management  vs.  Soyea Technology Co

Cicc Fund Management

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cicc Fund Management are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cicc Fund may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Soyea Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Soyea Technology Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Soyea Technology may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cicc Fund and Soyea Technology

The main advantage of trading using opposite Cicc Fund and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicc Fund position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.

The idea behind Cicc Fund Management and Soyea Technology Co 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.