Correlation Between CareRay Digital and Xizi Clean
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By analyzing existing cross correlation between CareRay Digital Medical and Xizi Clean Energy, you can compare the effects of market volatilities on CareRay Digital and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Xizi Clean.
Diversification Opportunities for CareRay Digital and Xizi Clean
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Xizi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of CareRay Digital i.e., CareRay Digital and Xizi Clean go up and down completely randomly.
Pair Corralation between CareRay Digital and Xizi Clean
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.38 times more return on investment than Xizi Clean. However, CareRay Digital is 1.38 times more volatile than Xizi Clean Energy. It trades about 0.02 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.08 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. Xizi Clean Energy
Performance |
| Timeline |
| CareRay Digital Medical |
| Xizi Clean Energy |
CareRay Digital and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Xizi Clean
The main advantage of trading using opposite CareRay Digital and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's 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 |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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