Correlation Between Shenzhen Bioeasy and CareRay Digital
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and CareRay Digital Medical, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and CareRay Digital.
Diversification Opportunities for Shenzhen Bioeasy and CareRay Digital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and CareRay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and CareRay Digital go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and CareRay Digital
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.95 times more return on investment than CareRay Digital. However, Shenzhen Bioeasy is 1.95 times more volatile than CareRay Digital Medical. It trades about 0.13 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.14 per unit of risk. If you would invest 861.00 in Shenzhen Bioeasy Biotechnology on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen Bioeasy Biotechnology or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. CareRay Digital Medical
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| CareRay Digital Medical |
Shenzhen Bioeasy and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and CareRay Digital
The main advantage of trading using opposite Shenzhen Bioeasy and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. PetroChina Co Ltd | Shenzhen Bioeasy vs. China Mobile Limited | Shenzhen Bioeasy vs. CNOOC Limited | Shenzhen Bioeasy vs. Ping An Insurance |
| CareRay Digital vs. Nanjing Putian Telecommunications | CareRay Digital vs. Shenzhen Hifuture Electric | CareRay Digital vs. Tianjin Realty Development | CareRay Digital vs. Shenyang Huitian Thermal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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