Correlation Between Cicc Fund and CITIC Securities

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

Diversification Opportunities for Cicc Fund and CITIC Securities

-0.81

Correlation Coefficient

Cicc Fund  CITIC Securities

Pay attention - limited upside

The 3 months correlation between Cicc and CITIC is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cicc Fund Management and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Cicc Fund i.e., Cicc Fund and CITIC Securities go up and down completely randomly.

Pair Corralation between Cicc Fund and CITIC Securities

Assuming the 90 days trading horizon Cicc Fund Management is expected to under-perform the CITIC Securities. But the stock apears to be less risky and, when comparing its historical volatility, Cicc Fund Management is 1.71 times less risky than CITIC Securities. The stock trades about -0.01 of its potential returns per unit of risk. The CITIC Securities Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,987  in CITIC Securities Co on September 12, 2024 and sell it today you would earn a total of  1,161  from holding CITIC Securities Co or generate 58.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	72.9%
Values	Daily Returns

Cicc Fund Management  vs.  CITIC Securities Co

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.

CITIC Securities

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Securities Co are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CITIC Securities sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cicc Fund and CITIC Securities

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

The idea behind Cicc Fund Management and CITIC Securities 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.