Correlation Between Thinkingdom Media and CareRay Digital
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By analyzing existing cross correlation between Thinkingdom Media Group and CareRay Digital Medical, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and CareRay Digital.
Diversification Opportunities for Thinkingdom Media and CareRay Digital
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thinkingdom and CareRay is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group 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 Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and CareRay Digital go up and down completely randomly.
Pair Corralation between Thinkingdom Media and CareRay Digital
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.06 times more return on investment than CareRay Digital. However, Thinkingdom Media is 1.06 times more volatile than CareRay Digital Medical. It trades about 0.13 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.13 per unit of risk. If you would invest 1,463 in Thinkingdom Media Group on October 18, 2024 and sell it today you would earn a total of 552.00 from holding Thinkingdom Media Group or generate 37.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. CareRay Digital Medical
Performance |
| Timeline |
| Thinkingdom Media |
| CareRay Digital Medical |
Thinkingdom Media and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and CareRay Digital
The main advantage of trading using opposite Thinkingdom Media and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Nanjing Putian Telecommunications | Thinkingdom Media vs. China Minmetals Rare | Thinkingdom Media vs. Songz Automobile Air | Thinkingdom Media vs. Jonjee Hi tech Industrial |
| CareRay Digital vs. Xiangyang Automobile Bearing | CareRay Digital vs. Everdisplay Optronics Shanghai | CareRay Digital vs. Beijing Enlight Media | CareRay Digital vs. Thinkingdom Media Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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