Correlation Between CareRay Digital and Nanjing Vishee
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By analyzing existing cross correlation between CareRay Digital Medical and Nanjing Vishee Medical, you can compare the effects of market volatilities on CareRay Digital and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and Nanjing Vishee.
Diversification Opportunities for CareRay Digital and Nanjing Vishee
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and Nanjing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of CareRay Digital i.e., CareRay Digital and Nanjing Vishee go up and down completely randomly.
Pair Corralation between CareRay Digital and Nanjing Vishee
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.12 times more return on investment than Nanjing Vishee. However, CareRay Digital is 1.12 times more volatile than Nanjing Vishee Medical. It trades about 0.01 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.2 per unit of risk. If you would invest 1,405 in CareRay Digital Medical on October 23, 2024 and sell it today you would earn a total of 1.00 from holding CareRay Digital Medical or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
CareRay Digital Medical vs. Nanjing Vishee Medical
Performance |
| Timeline |
| CareRay Digital Medical |
| Nanjing Vishee Medical |
CareRay Digital and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and Nanjing Vishee
The main advantage of trading using opposite CareRay Digital and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| CareRay Digital vs. Jinxiandai Information Industry | CareRay Digital vs. XinJiang GuoTong Pipeline | CareRay Digital vs. Huasi Agricultural Development | CareRay Digital vs. Shandong Longquan Pipeline |
| Nanjing Vishee vs. Ming Yang Smart | Nanjing Vishee vs. 159681 | Nanjing Vishee vs. 159005 | Nanjing Vishee vs. Loctek Ergonomic Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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