Correlation Between Beijing Bewinner and CareRay Digital
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By analyzing existing cross correlation between Beijing Bewinner Communications and CareRay Digital Medical, you can compare the effects of market volatilities on Beijing Bewinner 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 Beijing Bewinner with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and CareRay Digital.
Diversification Opportunities for Beijing Bewinner and CareRay Digital
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and CareRay is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication 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 Beijing Bewinner 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 Beijing Bewinner Communications 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 Beijing Bewinner i.e., Beijing Bewinner and CareRay Digital go up and down completely randomly.
Pair Corralation between Beijing Bewinner and CareRay Digital
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.06 times more return on investment than CareRay Digital. However, Beijing Bewinner is 1.06 times more volatile than CareRay Digital Medical. It trades about 0.02 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about -0.02 per unit of risk. If you would invest 666.00 in Beijing Bewinner Communications on October 31, 2024 and sell it today you would lose (1.00) from holding Beijing Bewinner Communications or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. CareRay Digital Medical
Performance |
| Timeline |
| Beijing Bewinner Com |
| CareRay Digital Medical |
Beijing Bewinner and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and CareRay Digital
The main advantage of trading using opposite Beijing Bewinner and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner 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.| Beijing Bewinner vs. Guangzhou Zhujiang Brewery | Beijing Bewinner vs. Highbroad Advanced Material | Beijing Bewinner vs. SSAW Hotels Resorts | Beijing Bewinner vs. Ningbo Ligong Online |
| CareRay Digital vs. Caihong Display Devices | CareRay Digital vs. Everdisplay Optronics Shanghai | CareRay Digital vs. Tongyu Communication | CareRay Digital vs. Guangzhou Dongfang Hotel |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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