Correlation Between CareRay Digital and New China
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By analyzing existing cross correlation between CareRay Digital Medical and New China Life, you can compare the effects of market volatilities on CareRay Digital and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and New China.
Diversification Opportunities for CareRay Digital and New China
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CareRay and New is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of CareRay Digital i.e., CareRay Digital and New China go up and down completely randomly.
Pair Corralation between CareRay Digital and New China
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.01 times more return on investment than New China. However, CareRay Digital is 1.01 times more volatile than New China Life. It trades about 0.14 of its potential returns per unit of risk. New China Life is currently generating about 0.14 per unit of risk. If you would invest 1,109 in CareRay Digital Medical on September 26, 2024 and sell it today you would earn a total of 318.00 from holding CareRay Digital Medical or generate 28.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CareRay Digital Medical vs. New China Life
Performance |
Timeline |
CareRay Digital Medical |
New China Life |
CareRay Digital and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CareRay Digital and New China
The main advantage of trading using opposite CareRay Digital and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.CareRay Digital vs. Fiberhome Telecommunication Technologies | CareRay Digital vs. Jiujiang Shanshui Technology | CareRay Digital vs. SUNSEA Telecommunications Co | CareRay Digital vs. Kuang Chi Technologies |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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