Correlation Between CareRay Digital and Xinhua Winshare
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By analyzing existing cross correlation between CareRay Digital Medical and Xinhua Winshare Publishing, you can compare the effects of market volatilities on CareRay Digital and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Xinhua Winshare.
Diversification Opportunities for CareRay Digital and Xinhua Winshare
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CareRay and Xinhua is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of CareRay Digital i.e., CareRay Digital and Xinhua Winshare go up and down completely randomly.
Pair Corralation between CareRay Digital and Xinhua Winshare
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the Xinhua Winshare. In addition to that, CareRay Digital is 1.58 times more volatile than Xinhua Winshare Publishing. It trades about -0.33 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.04 per unit of volatility. If you would invest 1,489 in Xinhua Winshare Publishing on October 11, 2024 and sell it today you would lose (23.00) from holding Xinhua Winshare Publishing or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| CareRay Digital Medical |
| Xinhua Winshare Publ |
CareRay Digital and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Xinhua Winshare
The main advantage of trading using opposite CareRay Digital and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| CareRay Digital vs. Hainan Mining Co | CareRay Digital vs. Shenyang Huitian Thermal | CareRay Digital vs. Hefei Metalforming Mach | CareRay Digital vs. Chinese Universe Publishing |
| Xinhua Winshare vs. CareRay Digital Medical | Xinhua Winshare vs. Xiangyu Medical Co | Xinhua Winshare vs. Do Fluoride Chemicals Co | Xinhua Winshare vs. Hengkang Medical Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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