Correlation Between CareRay Digital and Focus Media
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By analyzing existing cross correlation between CareRay Digital Medical and Focus Media Information, you can compare the effects of market volatilities on CareRay Digital and Focus Media 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 Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Focus Media.
Diversification Opportunities for CareRay Digital and Focus Media
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CareRay and Focus is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Focus Media Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Media Information 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 Focus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Media Information has no effect on the direction of CareRay Digital i.e., CareRay Digital and Focus Media go up and down completely randomly.
Pair Corralation between CareRay Digital and Focus Media
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 0.9 times more return on investment than Focus Media. However, CareRay Digital Medical is 1.11 times less risky than Focus Media. It trades about 0.4 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.1 per unit of risk. If you would invest 1,456 in CareRay Digital Medical on November 29, 2024 and sell it today you would earn a total of 139.00 from holding CareRay Digital Medical or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Focus Media Information
Performance |
| Timeline |
| CareRay Digital Medical |
| Focus Media Information |
CareRay Digital and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Focus Media
The main advantage of trading using opposite CareRay Digital and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Focus Media 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 Focus Media will offset losses from the drop in Focus Media's long position.| CareRay Digital vs. Tinavi Medical Technologies | CareRay Digital vs. Xian International Medical | CareRay Digital vs. Guangzhou Boji Medical | CareRay Digital vs. BrightGene Bio Medical |
| Focus Media vs. Sinomach Automobile Co | Focus Media vs. Shanghai Rongtai Health | Focus Media vs. Anhui Huaren Health | Focus Media vs. TianJin 712 Communication |
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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