Correlation Between CareRay Digital and Zhongrun Resources
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By analyzing existing cross correlation between CareRay Digital Medical and Zhongrun Resources Investment, you can compare the effects of market volatilities on CareRay Digital and Zhongrun Resources 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 CareRay Digital with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Zhongrun Resources.
Diversification Opportunities for CareRay Digital and Zhongrun Resources
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Zhongrun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and CareRay Digital 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 CareRay Digital Medical are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of CareRay Digital i.e., CareRay Digital and Zhongrun Resources go up and down completely randomly.
Pair Corralation between CareRay Digital and Zhongrun Resources
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 0.62 times more return on investment than Zhongrun Resources. However, CareRay Digital Medical is 1.61 times less risky than Zhongrun Resources. It trades about 0.02 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.28 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Zhongrun Resources Investment
Performance |
| Timeline |
| CareRay Digital Medical |
| Zhongrun Resources |
CareRay Digital and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Zhongrun Resources
The main advantage of trading using opposite CareRay Digital and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| CareRay Digital vs. Industrial and Commercial | CareRay Digital vs. Kweichow Moutai Co | CareRay Digital vs. Agricultural Bank of | CareRay Digital vs. China Mobile Limited |
| Zhongrun Resources vs. China Life Insurance | Zhongrun Resources vs. Cinda Securities Co | Zhongrun Resources vs. Piotech Inc A | Zhongrun Resources vs. Dongxing Sec Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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