Correlation Between CareRay Digital and Air China
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By analyzing existing cross correlation between CareRay Digital Medical and Air China Ltd, you can compare the effects of market volatilities on CareRay Digital and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Air China.
Diversification Opportunities for CareRay Digital and Air China
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Air is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of CareRay Digital i.e., CareRay Digital and Air China go up and down completely randomly.
Pair Corralation between CareRay Digital and Air China
Assuming the 90 days trading horizon CareRay Digital is expected to generate 18.33 times less return on investment than Air China. In addition to that, CareRay Digital is 1.27 times more volatile than Air China Ltd. It trades about 0.02 of its total potential returns per unit of risk. Air China Ltd is currently generating about 0.39 per unit of volatility. If you would invest 750.00 in Air China Ltd on September 13, 2024 and sell it today you would earn a total of 136.00 from holding Air China Ltd or generate 18.13% 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. Air China Ltd
Performance |
| Timeline |
| CareRay Digital Medical |
| Air China |
CareRay Digital and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Air China
The main advantage of trading using opposite CareRay Digital and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| CareRay Digital vs. Industrial and Commercial | CareRay Digital vs. Kweichow Moutai Co | CareRay Digital vs. Agricultural Bank of | CareRay Digital vs. China Mobile Limited |
| Air China vs. Shanghai Action Education | Air China vs. Heilongjiang Publishing Media | Air China vs. Qtone Education Group | Air China vs. Southern PublishingMedia 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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