Correlation Between Cicc Fund and Guangdong Marubi

Can any of the company-specific risk be diversified away by investing in both Cicc Fund and Guangdong Marubi 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 Guangdong Marubi 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 Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Cicc Fund and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicc Fund and Guangdong Marubi.

Diversification Opportunities for Cicc Fund and Guangdong Marubi

0.12

Correlation Coefficient

Cicc Fund  Guangdong Marubi

Average diversification

The 3 months correlation between Cicc and Guangdong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Cicc Fund i.e., Cicc Fund and Guangdong Marubi go up and down completely randomly.

Pair Corralation between Cicc Fund and Guangdong Marubi

Assuming the 90 days trading horizon Cicc Fund is expected to generate 2.06 times less return on investment than Guangdong Marubi. But when comparing it to its historical volatility, Cicc Fund Management is 1.99 times less risky than Guangdong Marubi. It trades about 0.09 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,202  in Guangdong Marubi Biotechnology on December 2, 2024 and sell it today you would earn a total of  127.00  from holding Guangdong Marubi Biotechnology or generate 3.97% return on investment over 90 days.

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

Cicc Fund Management  vs.  Guangdong Marubi Biotechnology

Cicc Fund Management

Risk-Adjusted Performance

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.

Guangdong Marubi Bio

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Cicc Fund and Guangdong Marubi

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

The idea behind Cicc Fund Management and Guangdong Marubi Biotechnology 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.