Correlation Between Xiandai Investment and CareRay Digital
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By analyzing existing cross correlation between Xiandai Investment Co and CareRay Digital Medical, you can compare the effects of market volatilities on Xiandai Investment and CareRay Digital 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 Xiandai Investment with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and CareRay Digital.
Diversification Opportunities for Xiandai Investment and CareRay Digital
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiandai and CareRay is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and CareRay Digital Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareRay Digital Medical and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with CareRay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareRay Digital Medical has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and CareRay Digital go up and down completely randomly.
Pair Corralation between Xiandai Investment and CareRay Digital
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.49 times more return on investment than CareRay Digital. However, Xiandai Investment Co is 2.05 times less risky than CareRay Digital. It trades about 0.03 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.01 per unit of risk. If you would invest 391.00 in Xiandai Investment Co on September 12, 2024 and sell it today you would earn a total of 75.00 from holding Xiandai Investment Co or generate 19.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. CareRay Digital Medical
Performance |
| Timeline |
| Xiandai Investment |
| CareRay Digital Medical |
Xiandai Investment and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and CareRay Digital
The main advantage of trading using opposite Xiandai Investment and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, CareRay Digital 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 CareRay Digital will offset losses from the drop in CareRay Digital's long position.| Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Bank of China | Xiandai Investment vs. PetroChina Co Ltd |
| CareRay Digital vs. Sunwave Communications Co | CareRay Digital vs. Harbin Hatou Investment | CareRay Digital vs. Xiandai Investment Co | CareRay Digital vs. Tongyu Communication |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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