Correlation Between CareRay Digital and Guangzhou Boji
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By analyzing existing cross correlation between CareRay Digital Medical and Guangzhou Boji Medical, you can compare the effects of market volatilities on CareRay Digital and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Guangzhou Boji.
Diversification Opportunities for CareRay Digital and Guangzhou Boji
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of CareRay Digital i.e., CareRay Digital and Guangzhou Boji go up and down completely randomly.
Pair Corralation between CareRay Digital and Guangzhou Boji
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the Guangzhou Boji. But the stock apears to be less risky and, when comparing its historical volatility, CareRay Digital Medical is 1.09 times less risky than Guangzhou Boji. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Boji Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,104 in Guangzhou Boji Medical on November 21, 2024 and sell it today you would lose (115.00) from holding Guangzhou Boji Medical or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Guangzhou Boji Medical
Performance |
| Timeline |
| CareRay Digital Medical |
| Guangzhou Boji Medical |
CareRay Digital and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Guangzhou Boji
The main advantage of trading using opposite CareRay Digital and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| CareRay Digital vs. Tibet Huayu Mining | CareRay Digital vs. Epoxy Base Electronic | CareRay Digital vs. Kunshan Guoli Electronic | CareRay Digital vs. Suzhou Industrial Park |
| Guangzhou Boji vs. Chongqing Brewery Co | Guangzhou Boji vs. Universal Scientific Industrial | Guangzhou Boji vs. Eastroc Beverage Group | Guangzhou Boji vs. Runjian Communication Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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