Correlation Between Hefei Metalforming and CareRay Digital
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By analyzing existing cross correlation between Hefei Metalforming Mach and CareRay Digital Medical, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and CareRay Digital.
Diversification Opportunities for Hefei Metalforming and CareRay Digital
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and CareRay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and CareRay Digital go up and down completely randomly.
Pair Corralation between Hefei Metalforming and CareRay Digital
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to under-perform the CareRay Digital. In addition to that, Hefei Metalforming is 1.29 times more volatile than CareRay Digital Medical. It trades about -0.28 of its total potential returns per unit of risk. CareRay Digital Medical is currently generating about -0.34 per unit of volatility. If you would invest 1,592 in CareRay Digital Medical on October 12, 2024 and sell it today you would lose (278.00) from holding CareRay Digital Medical or give up 17.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. CareRay Digital Medical
Performance |
| Timeline |
| Hefei Metalforming Mach |
| CareRay Digital Medical |
Hefei Metalforming and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and CareRay Digital
The main advantage of trading using opposite Hefei Metalforming and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Ligao Foods CoLtd | Hefei Metalforming vs. Shantou Wanshun Package | Hefei Metalforming vs. Longmaster Information Tech | Hefei Metalforming vs. Dawning Information Industry |
| CareRay Digital vs. Hainan Mining Co | CareRay Digital vs. Shenyang Huitian Thermal | CareRay Digital vs. Hefei Metalforming Mach | CareRay Digital vs. Chinese Universe Publishing |
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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