Correlation Between CareRay Digital and Harbin Air
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By analyzing existing cross correlation between CareRay Digital Medical and Harbin Air Conditioning, you can compare the effects of market volatilities on CareRay Digital and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Harbin Air.
Diversification Opportunities for CareRay Digital and Harbin Air
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CareRay and Harbin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of CareRay Digital i.e., CareRay Digital and Harbin Air go up and down completely randomly.
Pair Corralation between CareRay Digital and Harbin Air
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.32 times more return on investment than Harbin Air. However, CareRay Digital is 1.32 times more volatile than Harbin Air Conditioning. It trades about 0.14 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.08 per unit of risk. If you would invest 1,400 in CareRay Digital Medical on August 31, 2024 and sell it today you would earn a total of 115.00 from holding CareRay Digital Medical or generate 8.21% 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. Harbin Air Conditioning
Performance |
| Timeline |
| CareRay Digital Medical |
| Harbin Air Conditioning |
CareRay Digital and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Harbin Air
The main advantage of trading using opposite CareRay Digital and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| CareRay Digital vs. PetroChina Co Ltd | CareRay Digital vs. China Mobile Limited | CareRay Digital vs. Ping An Insurance | CareRay Digital vs. China Petroleum Chemical |
| Harbin Air vs. Cultural Investment Holdings | Harbin Air vs. Gome Telecom Equipment | Harbin Air vs. Bus Online Co | Harbin Air vs. Holitech Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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