Correlation Between CareRay Digital and Anhui Xinhua
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By analyzing existing cross correlation between CareRay Digital Medical and Anhui Xinhua Media, you can compare the effects of market volatilities on CareRay Digital and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Anhui Xinhua.
Diversification Opportunities for CareRay Digital and Anhui Xinhua
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CareRay and Anhui is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of CareRay Digital i.e., CareRay Digital and Anhui Xinhua go up and down completely randomly.
Pair Corralation between CareRay Digital and Anhui Xinhua
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.49 times more return on investment than Anhui Xinhua. However, CareRay Digital is 1.49 times more volatile than Anhui Xinhua Media. It trades about -0.14 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.23 per unit of risk. If you would invest 1,491 in CareRay Digital Medical on October 18, 2024 and sell it today you would lose (121.00) from holding CareRay Digital Medical or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Anhui Xinhua Media
Performance |
| Timeline |
| CareRay Digital Medical |
| Anhui Xinhua Media |
CareRay Digital and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Anhui Xinhua
The main advantage of trading using opposite CareRay Digital and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.| CareRay Digital vs. Xiangyang Automobile Bearing | CareRay Digital vs. Everdisplay Optronics Shanghai | CareRay Digital vs. Beijing Enlight Media | CareRay Digital vs. Thinkingdom Media Group |
| Anhui Xinhua vs. Quectel Wireless Solutions | Anhui Xinhua vs. Fiberhome Telecommunication Technologies | Anhui Xinhua vs. CareRay Digital Medical | Anhui Xinhua vs. Eyebright Medical Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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