Correlation Between Epoxy Base and CareRay Digital
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By analyzing existing cross correlation between Epoxy Base Electronic and CareRay Digital Medical, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and CareRay Digital.
Diversification Opportunities for Epoxy Base and CareRay Digital
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Epoxy and CareRay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and CareRay Digital go up and down completely randomly.
Pair Corralation between Epoxy Base and CareRay Digital
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.26 times more return on investment than CareRay Digital. However, Epoxy Base is 1.26 times more volatile than CareRay Digital Medical. It trades about 0.11 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 528.00 in Epoxy Base Electronic on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Epoxy Base Electronic or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. CareRay Digital Medical
Performance |
| Timeline |
| Epoxy Base Electronic |
| CareRay Digital Medical |
Epoxy Base and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and CareRay Digital
The main advantage of trading using opposite Epoxy Base and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Rongsheng Petrochemical Co | Epoxy Base vs. Hoshine Silicon Ind |
| CareRay Digital vs. PetroChina Co Ltd | CareRay Digital vs. China Mobile Limited | CareRay Digital vs. Ping An Insurance | CareRay Digital vs. China Petroleum Chemical |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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