Correlation Between CareRay Digital and Anhui Transport
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By analyzing existing cross correlation between CareRay Digital Medical and Anhui Transport Consulting, you can compare the effects of market volatilities on CareRay Digital and Anhui Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Anhui Transport.
Diversification Opportunities for CareRay Digital and Anhui Transport
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of CareRay Digital i.e., CareRay Digital and Anhui Transport go up and down completely randomly.
Pair Corralation between CareRay Digital and Anhui Transport
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.45 times more return on investment than Anhui Transport. However, CareRay Digital is 1.45 times more volatile than Anhui Transport Consulting. It trades about -0.09 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.18 per unit of risk. If you would invest 1,564 in CareRay Digital Medical on October 30, 2024 and sell it today you would lose (142.00) from holding CareRay Digital Medical or give up 9.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Anhui Transport Consulting
Performance |
| Timeline |
| CareRay Digital Medical |
| Anhui Transport Cons |
CareRay Digital and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Anhui Transport
The main advantage of trading using opposite CareRay Digital and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| CareRay Digital vs. Liaoning Dingjide Petrochemical | CareRay Digital vs. Xilong Chemical Co | CareRay Digital vs. Beijing Bewinner Communications | CareRay Digital vs. Jilin Jlu Communication |
| Anhui Transport vs. Nanjing OLO Home | Anhui Transport vs. Zoy Home Furnishing | Anhui Transport vs. Fiberhome Telecommunication Technologies | Anhui Transport vs. Jiangsu Yanghe Brewery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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