Correlation Between Zhonghong Pulin and CareRay Digital
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By analyzing existing cross correlation between Zhonghong Pulin Medical and CareRay Digital Medical, you can compare the effects of market volatilities on Zhonghong Pulin 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 Zhonghong Pulin with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and CareRay Digital.
Diversification Opportunities for Zhonghong Pulin and CareRay Digital
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhonghong and CareRay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical 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 Zhonghong Pulin 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 Zhonghong Pulin Medical 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 Zhonghong Pulin i.e., Zhonghong Pulin and CareRay Digital go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and CareRay Digital
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the CareRay Digital. But the stock apears to be less risky and, when comparing its historical volatility, Zhonghong Pulin Medical is 1.35 times less risky than CareRay Digital. The stock trades about -0.19 of its potential returns per unit of risk. The CareRay Digital Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,405 in CareRay Digital Medical on October 23, 2024 and sell it today you would earn a total of 1.00 from holding CareRay Digital Medical or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. CareRay Digital Medical
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| CareRay Digital Medical |
Zhonghong Pulin and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and CareRay Digital
The main advantage of trading using opposite Zhonghong Pulin and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin 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.| Zhonghong Pulin vs. Threes Company Media | Zhonghong Pulin vs. Hainan Airlines Co | Zhonghong Pulin vs. Changjiang Publishing Media | Zhonghong Pulin vs. Beijing Enlight Media |
| CareRay Digital vs. Jinxiandai Information Industry | CareRay Digital vs. XinJiang GuoTong Pipeline | CareRay Digital vs. Huasi Agricultural Development | CareRay Digital vs. Shandong Longquan Pipeline |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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