Correlation Between PetroChina and CareRay Digital
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By analyzing existing cross correlation between PetroChina Co Ltd and CareRay Digital Medical, you can compare the effects of market volatilities on PetroChina 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 PetroChina with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and CareRay Digital.
Diversification Opportunities for PetroChina and CareRay Digital
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and CareRay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd 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 PetroChina 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 PetroChina Co Ltd 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 PetroChina i.e., PetroChina and CareRay Digital go up and down completely randomly.
Pair Corralation between PetroChina and CareRay Digital
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the CareRay Digital. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.68 times less risky than CareRay Digital. The stock trades about -0.17 of its potential returns per unit of risk. The CareRay Digital Medical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,445 in CareRay Digital Medical on August 29, 2024 and sell it today you would earn a total of 37.00 from holding CareRay Digital Medical or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. CareRay Digital Medical
Performance |
| Timeline |
| PetroChina |
| CareRay Digital Medical |
PetroChina and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and CareRay Digital
The main advantage of trading using opposite PetroChina and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina 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.| PetroChina vs. Jahen Household Products | PetroChina vs. China Railway Materials | PetroChina vs. Shaanxi Meineng Clean | PetroChina vs. Guangzhou Seagull Kitchen |
| CareRay Digital vs. Bank of China | CareRay Digital vs. Kweichow Moutai Co | CareRay Digital vs. PetroChina Co Ltd | CareRay Digital vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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