Correlation Between Guangdong Xiongsu and CareRay Digital
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and CareRay Digital Medical, you can compare the effects of market volatilities on Guangdong Xiongsu 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 Guangdong Xiongsu with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and CareRay Digital.
Diversification Opportunities for Guangdong Xiongsu and CareRay Digital
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and CareRay is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology 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 Guangdong Xiongsu 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 Guangdong Xiongsu Technology 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 Guangdong Xiongsu i.e., Guangdong Xiongsu and CareRay Digital go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and CareRay Digital
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the CareRay Digital. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Xiongsu Technology is 1.3 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 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,571 in CareRay Digital Medical on January 2, 2025 and sell it today you would earn a total of 215.00 from holding CareRay Digital Medical or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. CareRay Digital Medical
Performance |
| Timeline |
| Guangdong Xiongsu |
| CareRay Digital Medical |
Guangdong Xiongsu and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and CareRay Digital
The main advantage of trading using opposite Guangdong Xiongsu and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu 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.| Guangdong Xiongsu vs. Glodon Software Co | Guangdong Xiongsu vs. Linkage Software Co | Guangdong Xiongsu vs. Huizhou Speed Wireless | Guangdong Xiongsu vs. Linewell Software Co |
| CareRay Digital vs. Chengdu Xinzhu RoadBridge | CareRay Digital vs. Guangdong Jingyi Metal | CareRay Digital vs. Jiangsu Broadcasting Cable | CareRay Digital vs. Sichuan Fulin Transportation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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