Correlation Between CareRay Digital and Epoxy Base
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By analyzing existing cross correlation between CareRay Digital Medical and Epoxy Base Electronic, you can compare the effects of market volatilities on CareRay Digital and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Epoxy Base.
Diversification Opportunities for CareRay Digital and Epoxy Base
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CareRay and Epoxy is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of CareRay Digital i.e., CareRay Digital and Epoxy Base go up and down completely randomly.
Pair Corralation between CareRay Digital and Epoxy Base
Assuming the 90 days trading horizon CareRay Digital is expected to generate 1.03 times less return on investment than Epoxy Base. But when comparing it to its historical volatility, CareRay Digital Medical is 1.26 times less risky than Epoxy Base. It trades about 0.14 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Epoxy Base Electronic on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Epoxy Base Electronic or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Epoxy Base Electronic
Performance |
| Timeline |
| CareRay Digital Medical |
| Epoxy Base Electronic |
CareRay Digital and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Epoxy Base
The main advantage of trading using opposite CareRay Digital and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| CareRay Digital vs. PetroChina Co Ltd | CareRay Digital vs. China Mobile Limited | CareRay Digital vs. Ping An Insurance | CareRay Digital vs. China Petroleum Chemical |
| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Rongsheng Petrochemical Co | Epoxy Base vs. Hoshine Silicon Ind |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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