Correlation Between CareRay Digital and Hengkang Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between CareRay Digital Medical and Hengkang Medical Group, you can compare the effects of market volatilities on CareRay Digital and Hengkang Medical 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 Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Hengkang Medical.
Diversification Opportunities for CareRay Digital and Hengkang Medical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CareRay and Hengkang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical 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 Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of CareRay Digital i.e., CareRay Digital and Hengkang Medical go up and down completely randomly.
Pair Corralation between CareRay Digital and Hengkang Medical
Assuming the 90 days trading horizon CareRay Digital is expected to generate 1.36 times less return on investment than Hengkang Medical. But when comparing it to its historical volatility, CareRay Digital Medical is 1.34 times less risky than Hengkang Medical. It trades about 0.11 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Hengkang Medical Group on November 2, 2024 and sell it today you would earn a total of 74.00 from holding Hengkang Medical Group or generate 42.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Hengkang Medical Group
Performance |
| Timeline |
| CareRay Digital Medical |
| Hengkang Medical |
CareRay Digital and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Hengkang Medical
The main advantage of trading using opposite CareRay Digital and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| CareRay Digital vs. Offshore Oil Engineering | CareRay Digital vs. Shandong Publishing Media | CareRay Digital vs. Southern PublishingMedia Co | CareRay Digital vs. Mango Excellent Media |
| Hengkang Medical vs. Duzhe Publishing Media | Hengkang Medical vs. Xinhua Winshare Publishing | Hengkang Medical vs. Tangel Publishing | Hengkang Medical vs. Zhejiang Kingland Pipeline |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |