Correlation Between CareRay Digital and V V
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By analyzing existing cross correlation between CareRay Digital Medical and V V Food, you can compare the effects of market volatilities on CareRay Digital and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and V V.
Diversification Opportunities for CareRay Digital and V V
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CareRay and 600300 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of CareRay Digital i.e., CareRay Digital and V V go up and down completely randomly.
Pair Corralation between CareRay Digital and V V
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the V V. In addition to that, CareRay Digital is 1.7 times more volatile than V V Food. It trades about -0.02 of its total potential returns per unit of risk. V V Food is currently generating about -0.01 per unit of volatility. If you would invest 335.00 in V V Food on October 14, 2024 and sell it today you would lose (47.00) from holding V V Food or give up 14.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. V V Food
Performance |
| Timeline |
| CareRay Digital Medical |
| V V Food |
CareRay Digital and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and V V
The main advantage of trading using opposite CareRay Digital and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| CareRay Digital vs. Tianjin Ruixin Technology | CareRay Digital vs. Iat Automobile Technology | CareRay Digital vs. Kuangda Technology Group | CareRay Digital vs. Guangdong Xiongsu Technology |
| V V vs. Shanghai Sanyou Medical | V V vs. CareRay Digital Medical | V V vs. Easyhome New Retail | V V vs. Tongyu Communication |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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