Correlation Between Innovative Medical and CareRay Digital
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By analyzing existing cross correlation between Innovative Medical Management and CareRay Digital Medical, you can compare the effects of market volatilities on Innovative Medical 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 Innovative Medical with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and CareRay Digital.
Diversification Opportunities for Innovative Medical and CareRay Digital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Innovative and CareRay is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management 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 Innovative Medical 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 Innovative Medical Management 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 Innovative Medical i.e., Innovative Medical and CareRay Digital go up and down completely randomly.
Pair Corralation between Innovative Medical and CareRay Digital
Assuming the 90 days trading horizon Innovative Medical Management is expected to under-perform the CareRay Digital. In addition to that, Innovative Medical is 1.82 times more volatile than CareRay Digital Medical. It trades about -0.15 of its total potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.01 per unit of volatility. If you would invest 1,405 in CareRay Digital Medical on October 23, 2024 and sell it today you would earn a total of 1.00 from holding CareRay Digital Medical or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Innovative Medical Management vs. CareRay Digital Medical
Performance |
| Timeline |
| Innovative Medical |
| CareRay Digital Medical |
Innovative Medical and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and CareRay Digital
The main advantage of trading using opposite Innovative Medical and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical 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.| Innovative Medical vs. Lotus Health Group | Innovative Medical vs. Meinian Onehealth Healthcare | Innovative Medical vs. Linewell Software Co | Innovative Medical vs. Fujian Boss Software |
| CareRay Digital vs. Jinxiandai Information Industry | CareRay Digital vs. XinJiang GuoTong Pipeline | CareRay Digital vs. Huasi Agricultural Development | CareRay Digital vs. Shandong Longquan Pipeline |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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