Correlation Between Cicc Fund and Harvest Fund

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

Diversification Opportunities for Cicc Fund and Harvest Fund

0.65

Correlation Coefficient

Cicc Fund  Harvest Fund

Poor diversification

The 3 months correlation between Cicc and Harvest is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and Harvest Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Fund Management 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 Harvest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Fund Management has no effect on the direction of Cicc Fund i.e., Cicc Fund and Harvest Fund go up and down completely randomly.

Pair Corralation between Cicc Fund and Harvest Fund

Assuming the 90 days trading horizon Cicc Fund Management is expected to under-perform the Harvest Fund. In addition to that, Cicc Fund is 1.01 times more volatile than Harvest Fund Management. It trades about -0.52 of its total potential returns per unit of risk. Harvest Fund Management is currently generating about 0.15 per unit of volatility. If you would invest  256.00  in Harvest Fund Management on September 4, 2024 and sell it today you would earn a total of  4.00  from holding Harvest Fund Management or generate 1.56% 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.  Harvest Fund Management

Cicc Fund Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cicc Fund Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Harvest Fund Management

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cicc Fund and Harvest Fund

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

The idea behind Cicc Fund Management and Harvest 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.