Correlation Between CareRay Digital and China Petroleum
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By analyzing existing cross correlation between CareRay Digital Medical and China Petroleum Chemical, you can compare the effects of market volatilities on CareRay Digital and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and China Petroleum.
Diversification Opportunities for CareRay Digital and China Petroleum
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CareRay and China is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of CareRay Digital i.e., CareRay Digital and China Petroleum go up and down completely randomly.
Pair Corralation between CareRay Digital and China Petroleum
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 2.57 times more return on investment than China Petroleum. However, CareRay Digital is 2.57 times more volatile than China Petroleum Chemical. It trades about 0.45 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.48 per unit of risk. If you would invest 1,422 in CareRay Digital Medical on November 28, 2024 and sell it today you would earn a total of 162.00 from holding CareRay Digital Medical or generate 11.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.12% |
Values | Daily Returns |
CareRay Digital Medical vs. China Petroleum Chemical
Performance |
Timeline |
CareRay Digital Medical |
China Petroleum Chemical |
CareRay Digital and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CareRay Digital and China Petroleum
The main advantage of trading using opposite CareRay Digital and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.CareRay Digital vs. Sunwoda Electronic | CareRay Digital vs. Porton Fine Chemicals | CareRay Digital vs. Huatian Hotel Group | CareRay Digital vs. BTG Hotels Group |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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