Correlation Between Do Fluoride and CareRay Digital
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and CareRay Digital Medical, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and CareRay Digital.
Diversification Opportunities for Do Fluoride and CareRay Digital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002407 and CareRay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals 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 Do Fluoride 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 Do Fluoride Chemicals 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 Do Fluoride i.e., Do Fluoride and CareRay Digital go up and down completely randomly.
Pair Corralation between Do Fluoride and CareRay Digital
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the CareRay Digital. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 1.24 times less risky than CareRay Digital. The stock trades about -0.05 of its potential returns per unit of risk. The CareRay Digital Medical is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,114 in CareRay Digital Medical on October 16, 2024 and sell it today you would lose (819.00) from holding CareRay Digital Medical or give up 38.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. CareRay Digital Medical
Performance |
| Timeline |
| Do Fluoride Chemicals |
| CareRay Digital Medical |
Do Fluoride and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and CareRay Digital
The main advantage of trading using opposite Do Fluoride and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Mengtian Home Group | Do Fluoride vs. Hainan Airlines Co | Do Fluoride vs. Dr Peng Telecom | Do Fluoride vs. Telling Telecommunication Holding |
| CareRay Digital vs. Tibet Huayu Mining | CareRay Digital vs. China Minmetals Rare | CareRay Digital vs. Ye Chiu Metal | CareRay Digital vs. Pengxin International Mining |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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