Correlation Between Ye Chiu and CareRay Digital
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By analyzing existing cross correlation between Ye Chiu Metal and CareRay Digital Medical, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and CareRay Digital.
Diversification Opportunities for Ye Chiu and CareRay Digital
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and CareRay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and CareRay Digital go up and down completely randomly.
Pair Corralation between Ye Chiu and CareRay Digital
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the CareRay Digital. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.0 times less risky than CareRay Digital. The stock trades about -0.12 of its potential returns per unit of risk. The CareRay Digital Medical is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,564 in CareRay Digital Medical on October 30, 2024 and sell it today you would lose (142.00) from holding CareRay Digital Medical or give up 9.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. CareRay Digital Medical
Performance |
| Timeline |
| Ye Chiu Metal |
| CareRay Digital Medical |
Ye Chiu and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and CareRay Digital
The main advantage of trading using opposite Ye Chiu and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Tianshan Aluminum Group | Ye Chiu vs. Suzhou Weizhixiang Food | Ye Chiu vs. Shanghai Yanpu Metal | Ye Chiu vs. CITIC Metal Co |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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