Correlation Between CareRay Digital and Wuxi Xuelang
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By analyzing existing cross correlation between CareRay Digital Medical and Wuxi Xuelang Environmental, you can compare the effects of market volatilities on CareRay Digital and Wuxi Xuelang 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 Wuxi Xuelang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Wuxi Xuelang.
Diversification Opportunities for CareRay Digital and Wuxi Xuelang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CareRay and Wuxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Wuxi Xuelang Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xuelang Environ 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 Wuxi Xuelang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xuelang Environ has no effect on the direction of CareRay Digital i.e., CareRay Digital and Wuxi Xuelang go up and down completely randomly.
Pair Corralation between CareRay Digital and Wuxi Xuelang
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 0.75 times more return on investment than Wuxi Xuelang. However, CareRay Digital Medical is 1.33 times less risky than Wuxi Xuelang. It trades about 0.22 of its potential returns per unit of risk. Wuxi Xuelang Environmental is currently generating about -0.03 per unit of risk. If you would invest 1,317 in CareRay Digital Medical on November 3, 2024 and sell it today you would earn a total of 105.00 from holding CareRay Digital Medical or generate 7.97% 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. Wuxi Xuelang Environmental
Performance |
| Timeline |
| CareRay Digital Medical |
| Wuxi Xuelang Environ |
CareRay Digital and Wuxi Xuelang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Wuxi Xuelang
The main advantage of trading using opposite CareRay Digital and Wuxi Xuelang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Wuxi Xuelang 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 Wuxi Xuelang will offset losses from the drop in Wuxi Xuelang's long position.| CareRay Digital vs. Jiangsu Yueda Investment | CareRay Digital vs. Chongqing Road Bridge | CareRay Digital vs. Zhejiang Construction Investment | CareRay Digital vs. Metro Investment Development |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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