Correlation Between CareRay Digital and Shenzhen Topway
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By analyzing existing cross correlation between CareRay Digital Medical and Shenzhen Topway Video, you can compare the effects of market volatilities on CareRay Digital and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Shenzhen Topway.
Diversification Opportunities for CareRay Digital and Shenzhen Topway
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CareRay and Shenzhen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of CareRay Digital i.e., CareRay Digital and Shenzhen Topway go up and down completely randomly.
Pair Corralation between CareRay Digital and Shenzhen Topway
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the Shenzhen Topway. But the stock apears to be less risky and, when comparing its historical volatility, CareRay Digital Medical is 1.21 times less risky than Shenzhen Topway. The stock trades about 0.0 of its potential returns per unit of risk. The Shenzhen Topway Video is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Shenzhen Topway Video on September 3, 2024 and sell it today you would earn a total of 367.00 from holding Shenzhen Topway Video or generate 56.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Shenzhen Topway Video
Performance |
| Timeline |
| CareRay Digital Medical |
| Shenzhen Topway Video |
CareRay Digital and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Shenzhen Topway
The main advantage of trading using opposite CareRay Digital and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| CareRay Digital vs. Chengdu Kanghua Biological | CareRay Digital vs. Beijing Wantai Biological | CareRay Digital vs. Suzhou Novoprotein Scientific | CareRay Digital vs. Aluminum Corp of |
| Shenzhen Topway vs. Touchstone International Medical | Shenzhen Topway vs. CareRay Digital Medical | Shenzhen Topway vs. Unisplendour Corp | Shenzhen Topway vs. Zhongshan Public Utilities |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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