Correlation Between 159681 and IRay Technology
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By analyzing existing cross correlation between 159681 and iRay Technology Co, you can compare the effects of market volatilities on 159681 and IRay Technology 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 159681 with a short position of IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and IRay Technology.
Diversification Opportunities for 159681 and IRay Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and IRay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology and 159681 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 159681 are associated (or correlated) with IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of 159681 i.e., 159681 and IRay Technology go up and down completely randomly.
Pair Corralation between 159681 and IRay Technology
Assuming the 90 days trading horizon 159681 is expected to generate 0.57 times more return on investment than IRay Technology. However, 159681 is 1.77 times less risky than IRay Technology. It trades about 0.01 of its potential returns per unit of risk. iRay Technology Co is currently generating about -0.19 per unit of risk. If you would invest 96.00 in 159681 on September 24, 2024 and sell it today you would earn a total of 0.00 from holding 159681 or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
159681 vs. iRay Technology Co
Performance |
Timeline |
159681 |
iRay Technology |
159681 and IRay Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159681 and IRay Technology
The main advantage of trading using opposite 159681 and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology's long position.The idea behind 159681 and iRay Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.IRay Technology vs. New China Life | IRay Technology vs. Ming Yang Smart | IRay Technology vs. 159681 | IRay Technology vs. 159005 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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