Correlation Between CareRay Digital and Chison Medical
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By analyzing existing cross correlation between CareRay Digital Medical and Chison Medical Technologies, you can compare the effects of market volatilities on CareRay Digital and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Chison Medical.
Diversification Opportunities for CareRay Digital and Chison Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CareRay and Chison is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of CareRay Digital i.e., CareRay Digital and Chison Medical go up and down completely randomly.
Pair Corralation between CareRay Digital and Chison Medical
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 0.89 times more return on investment than Chison Medical. However, CareRay Digital Medical is 1.12 times less risky than Chison Medical. It trades about 0.11 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.08 per unit of risk. If you would invest 1,082 in CareRay Digital Medical on November 2, 2024 and sell it today you would earn a total of 340.00 from holding CareRay Digital Medical or generate 31.42% 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. Chison Medical Technologies
Performance |
| Timeline |
| CareRay Digital Medical |
| Chison Medical Techn |
CareRay Digital and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Chison Medical
The main advantage of trading using opposite CareRay Digital and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| CareRay Digital vs. Offshore Oil Engineering | CareRay Digital vs. Shandong Publishing Media | CareRay Digital vs. Southern PublishingMedia Co | CareRay Digital vs. Mango Excellent Media |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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