Correlation Between Chengdu Xinzhu and CareRay Digital
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and CareRay Digital Medical, you can compare the effects of market volatilities on Chengdu Xinzhu 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 Chengdu Xinzhu with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and CareRay Digital.
Diversification Opportunities for Chengdu Xinzhu and CareRay Digital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and CareRay is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu i.e., Chengdu Xinzhu and CareRay Digital go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and CareRay Digital
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.9 times more return on investment than CareRay Digital. However, Chengdu Xinzhu is 1.9 times more volatile than CareRay Digital Medical. It trades about -0.09 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about -0.35 per unit of risk. If you would invest 578.00 in Chengdu Xinzhu RoadBridge on October 16, 2024 and sell it today you would lose (61.00) from holding Chengdu Xinzhu RoadBridge or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. CareRay Digital Medical
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| CareRay Digital Medical |
Chengdu Xinzhu and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and CareRay Digital
The main advantage of trading using opposite Chengdu Xinzhu and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu 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.| Chengdu Xinzhu vs. Fujian Oriental Silver | Chengdu Xinzhu vs. Xinjiang Baodi Mining | Chengdu Xinzhu vs. Shenzhen Silver Basis | Chengdu Xinzhu vs. Wuhan Hvsen Biotechnology |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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