Correlation Between CareRay Digital and Fuzhou Rockchip
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By analyzing existing cross correlation between CareRay Digital Medical and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on CareRay Digital and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Fuzhou Rockchip.
Diversification Opportunities for CareRay Digital and Fuzhou Rockchip
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CareRay and Fuzhou is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of CareRay Digital i.e., CareRay Digital and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between CareRay Digital and Fuzhou Rockchip
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 0.32 times more return on investment than Fuzhou Rockchip. However, CareRay Digital Medical is 3.1 times less risky than Fuzhou Rockchip. It trades about 0.4 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.04 per unit of risk. If you would invest 1,456 in CareRay Digital Medical on November 29, 2024 and sell it today you would earn a total of 139.00 from holding CareRay Digital Medical or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| CareRay Digital Medical |
| Fuzhou Rockchip Elec |
CareRay Digital and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Fuzhou Rockchip
The main advantage of trading using opposite CareRay Digital and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| CareRay Digital vs. Tinavi Medical Technologies | CareRay Digital vs. Xian International Medical | CareRay Digital vs. Guangzhou Boji Medical | CareRay Digital vs. BrightGene Bio Medical |
| Fuzhou Rockchip vs. Hefei Metalforming Mach | Fuzhou Rockchip vs. Kidswant Children Products | Fuzhou Rockchip vs. Anhui Gujing Distillery | Fuzhou Rockchip vs. Shenzhen Zqgame |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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