Correlation Between CareRay Digital and PetroChina
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By analyzing existing cross correlation between CareRay Digital Medical and PetroChina Co Ltd, you can compare the effects of market volatilities on CareRay Digital and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and PetroChina.
Diversification Opportunities for CareRay Digital and PetroChina
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CareRay and PetroChina is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of CareRay Digital i.e., CareRay Digital and PetroChina go up and down completely randomly.
Pair Corralation between CareRay Digital and PetroChina
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.25 times more return on investment than PetroChina. However, CareRay Digital is 1.25 times more volatile than PetroChina Co Ltd. It trades about 0.2 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.23 per unit of risk. If you would invest 1,325 in CareRay Digital Medical on November 1, 2024 and sell it today you would earn a total of 97.00 from holding CareRay Digital Medical or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. PetroChina Co Ltd
Performance |
| Timeline |
| CareRay Digital Medical |
| PetroChina |
CareRay Digital and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and PetroChina
The main advantage of trading using opposite CareRay Digital and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| CareRay Digital vs. Dymatic Chemicals | CareRay Digital vs. Maoming Petro Chemical Shihua | CareRay Digital vs. Xinxiang Chemical Fiber | CareRay Digital vs. Guizhou Chanhen Chemical |
| PetroChina vs. Shenzhen Glory Medical | PetroChina vs. CareRay Digital Medical | PetroChina vs. Chison Medical Technologies | PetroChina vs. Touchstone International Medical |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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