Correlation Between CareRay Digital and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between CareRay Digital Medical and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on CareRay Digital and GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and GigaDevice SemiconductorBei.
Diversification Opportunities for CareRay Digital and GigaDevice SemiconductorBei
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CareRay and GigaDevice is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of CareRay Digital i.e., CareRay Digital and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between CareRay Digital and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon CareRay Digital is expected to generate 23.99 times less return on investment than GigaDevice SemiconductorBei. But when comparing it to its historical volatility, CareRay Digital Medical is 1.93 times less risky than GigaDevice SemiconductorBei. It trades about 0.02 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 10,725 in GigaDevice SemiconductorBeiji on October 24, 2024 and sell it today you would earn a total of 2,485 from holding GigaDevice SemiconductorBeiji or generate 23.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| CareRay Digital Medical |
| GigaDevice SemiconductorBei |
CareRay Digital and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and GigaDevice SemiconductorBei
The main advantage of trading using opposite CareRay Digital and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| CareRay Digital vs. Wuxi Xuelang Environmental | CareRay Digital vs. Smartgiant Technology Co | CareRay Digital vs. Guangdong Liantai Environmental | CareRay Digital vs. Guangzhou Restaurants Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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