Correlation Between Chengdu Kanghua and CareRay Digital
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By analyzing existing cross correlation between Chengdu Kanghua Biological and CareRay Digital Medical, you can compare the effects of market volatilities on Chengdu Kanghua 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 Kanghua with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and CareRay Digital.
Diversification Opportunities for Chengdu Kanghua and CareRay Digital
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and CareRay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological 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 Kanghua 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 Kanghua Biological 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 Kanghua i.e., Chengdu Kanghua and CareRay Digital go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and CareRay Digital
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the CareRay Digital. In addition to that, Chengdu Kanghua is 1.21 times more volatile than CareRay Digital Medical. It trades about 0.0 of its total potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.04 per unit of volatility. If you would invest 1,380 in CareRay Digital Medical on September 3, 2024 and sell it today you would earn a total of 184.00 from holding CareRay Digital Medical or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. CareRay Digital Medical
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| CareRay Digital Medical |
Chengdu Kanghua and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and CareRay Digital
The main advantage of trading using opposite Chengdu Kanghua and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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 Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
| CareRay Digital vs. Chengdu Kanghua Biological | CareRay Digital vs. Beijing Wantai Biological | CareRay Digital vs. Suzhou Novoprotein Scientific | CareRay Digital vs. Aluminum Corp of |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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