Correlation Between Pengxin International and CareRay Digital
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By analyzing existing cross correlation between Pengxin International Mining and CareRay Digital Medical, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and CareRay Digital.
Diversification Opportunities for Pengxin International and CareRay Digital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pengxin and CareRay is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining 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 Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and CareRay Digital go up and down completely randomly.
Pair Corralation between Pengxin International and CareRay Digital
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.83 times more return on investment than CareRay Digital. However, Pengxin International is 1.83 times more volatile than CareRay Digital Medical. It trades about 0.02 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about -0.09 per unit of risk. If you would invest 316.00 in Pengxin International Mining on October 30, 2024 and sell it today you would lose (1.00) from holding Pengxin International Mining or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. CareRay Digital Medical
Performance |
| Timeline |
| Pengxin International |
| CareRay Digital Medical |
Pengxin International and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and CareRay Digital
The main advantage of trading using opposite Pengxin International and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.| Pengxin International vs. Beijing Kaiwen Education | Pengxin International vs. COL Digital Publishing | Pengxin International vs. Allied Machinery Co | Pengxin International vs. Qijing Machinery |
| CareRay Digital vs. Liaoning Dingjide Petrochemical | CareRay Digital vs. Xilong Chemical Co | CareRay Digital vs. Beijing Bewinner Communications | CareRay Digital vs. Jilin Jlu Communication |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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