Correlation Between Wuxi Xuelang and CareRay Digital
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By analyzing existing cross correlation between Wuxi Xuelang Environmental and CareRay Digital Medical, you can compare the effects of market volatilities on Wuxi Xuelang 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 Wuxi Xuelang with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Xuelang and CareRay Digital.
Diversification Opportunities for Wuxi Xuelang and CareRay Digital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuxi and CareRay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Xuelang Environmental 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 Wuxi Xuelang 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 Wuxi Xuelang Environmental 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 Wuxi Xuelang i.e., Wuxi Xuelang and CareRay Digital go up and down completely randomly.
Pair Corralation between Wuxi Xuelang and CareRay Digital
Assuming the 90 days trading horizon Wuxi Xuelang Environmental is expected to under-perform the CareRay Digital. In addition to that, Wuxi Xuelang is 1.33 times more volatile than CareRay Digital Medical. It trades about -0.03 of its total potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.22 per unit of volatility. If you would invest 1,317 in CareRay Digital Medical on November 3, 2024 and sell it today you would earn a total of 105.00 from holding CareRay Digital Medical or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Xuelang Environmental vs. CareRay Digital Medical
Performance |
| Timeline |
| Wuxi Xuelang Environ |
| CareRay Digital Medical |
Wuxi Xuelang and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Xuelang and CareRay Digital
The main advantage of trading using opposite Wuxi Xuelang and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Xuelang 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.| Wuxi Xuelang vs. Vats Liquor Chain | Wuxi Xuelang vs. Western Metal Materials | Wuxi Xuelang vs. Guangzhou Dongfang Hotel | Wuxi Xuelang vs. Jiugui Liquor Co |
| CareRay Digital vs. Jiangsu Yueda Investment | CareRay Digital vs. Chongqing Road Bridge | CareRay Digital vs. Zhejiang Construction Investment | CareRay Digital vs. Metro Investment Development |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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