Correlation Between Touchstone International and CareRay Digital
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By analyzing existing cross correlation between Touchstone International Medical and CareRay Digital Medical, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and CareRay Digital.
Diversification Opportunities for Touchstone International and CareRay Digital
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Touchstone and CareRay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic 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 Touchstone International 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and CareRay Digital go up and down completely randomly.
Pair Corralation between Touchstone International and CareRay Digital
Assuming the 90 days trading horizon Touchstone International is expected to generate 11.81 times less return on investment than CareRay Digital. But when comparing it to its historical volatility, Touchstone International Medical is 1.2 times less risky than CareRay Digital. It trades about 0.0 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,588 in CareRay Digital Medical on September 13, 2024 and sell it today you would earn a total of 4.00 from holding CareRay Digital Medical or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. CareRay Digital Medical
Performance |
| Timeline |
| Touchstone International |
| CareRay Digital Medical |
Touchstone International and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and CareRay Digital
The main advantage of trading using opposite Touchstone International and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. Industrial and Commercial | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. Agricultural Bank of | Touchstone International vs. China Mobile Limited |
| CareRay Digital vs. Industrial and Commercial | CareRay Digital vs. Kweichow Moutai Co | CareRay Digital vs. Agricultural Bank of | CareRay Digital vs. China Mobile Limited |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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