Correlation Between CareRay Digital and Liaoning Dingjide
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By analyzing existing cross correlation between CareRay Digital Medical and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on CareRay Digital and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Liaoning Dingjide.
Diversification Opportunities for CareRay Digital and Liaoning Dingjide
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CareRay and Liaoning is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of CareRay Digital i.e., CareRay Digital and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between CareRay Digital and Liaoning Dingjide
Assuming the 90 days trading horizon CareRay Digital Medical is expected to under-perform the Liaoning Dingjide. But the stock apears to be less risky and, when comparing its historical volatility, CareRay Digital Medical is 1.47 times less risky than Liaoning Dingjide. The stock trades about -0.38 of its potential returns per unit of risk. The Liaoning Dingjide Petrochemical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,298 in Liaoning Dingjide Petrochemical on October 14, 2024 and sell it today you would lose (36.00) from holding Liaoning Dingjide Petrochemical or give up 1.09% 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. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| CareRay Digital Medical |
| Liaoning Dingjide |
CareRay Digital and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Liaoning Dingjide
The main advantage of trading using opposite CareRay Digital and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| CareRay Digital vs. Tianjin Ruixin Technology | CareRay Digital vs. Iat Automobile Technology | CareRay Digital vs. Kuangda Technology Group | CareRay Digital vs. Guangdong Xiongsu Technology |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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