Correlation Between CareRay Digital and Caihong Display
Specify exactly 2 symbols:
By analyzing existing cross correlation between CareRay Digital Medical and Caihong Display Devices, you can compare the effects of market volatilities on CareRay Digital and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Caihong Display.
Diversification Opportunities for CareRay Digital and Caihong Display
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Caihong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of CareRay Digital i.e., CareRay Digital and Caihong Display go up and down completely randomly.
Pair Corralation between CareRay Digital and Caihong Display
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the Caihong Display. In addition to that, CareRay Digital is 1.26 times more volatile than Caihong Display Devices. It trades about -0.01 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.04 per unit of volatility. If you would invest 584.00 in Caihong Display Devices on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Caihong Display Devices or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Caihong Display Devices
Performance |
| Timeline |
| CareRay Digital Medical |
| Caihong Display Devices |
CareRay Digital and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Caihong Display
The main advantage of trading using opposite CareRay Digital and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| CareRay Digital vs. Nanjing Putian Telecommunications | CareRay Digital vs. Shenzhen Hifuture Electric | CareRay Digital vs. Tianjin Realty Development | CareRay Digital vs. Shenyang Huitian Thermal |
| Caihong Display vs. Cultural Investment Holdings | Caihong Display vs. Gome Telecom Equipment | Caihong Display vs. Bus Online Co | Caihong Display vs. Zotye Automobile 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |