Correlation Between Guangdong Electric and CareRay Digital
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By analyzing existing cross correlation between Guangdong Electric Power and CareRay Digital Medical, you can compare the effects of market volatilities on Guangdong Electric and CareRay Digital 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 Guangdong Electric with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and CareRay Digital.
Diversification Opportunities for Guangdong Electric and CareRay Digital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and CareRay is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power and CareRay Digital Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareRay Digital Medical and Guangdong Electric 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 Guangdong Electric Power are associated (or correlated) with CareRay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareRay Digital Medical has no effect on the direction of Guangdong Electric i.e., Guangdong Electric and CareRay Digital go up and down completely randomly.
Pair Corralation between Guangdong Electric and CareRay Digital
Assuming the 90 days trading horizon Guangdong Electric Power is expected to generate 0.31 times more return on investment than CareRay Digital. However, Guangdong Electric Power is 3.24 times less risky than CareRay Digital. It trades about 0.0 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about -0.01 per unit of risk. If you would invest 210.00 in Guangdong Electric Power on September 24, 2024 and sell it today you would lose (5.00) from holding Guangdong Electric Power or give up 2.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Guangdong Electric Power vs. CareRay Digital Medical
Performance |
Timeline |
Guangdong Electric Power |
CareRay Digital Medical |
Guangdong Electric and CareRay Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Electric and CareRay Digital
The main advantage of trading using opposite Guangdong Electric and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric position performs unexpectedly, CareRay Digital 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 CareRay Digital will offset losses from the drop in CareRay Digital's long position.Guangdong Electric vs. Beijing Yanjing Brewery | Guangdong Electric vs. CareRay Digital Medical | Guangdong Electric vs. Jiangsu Yanghe Brewery | Guangdong Electric vs. Ligao Foods CoLtd |
CareRay Digital vs. New China Life | CareRay Digital vs. Ming Yang Smart | CareRay Digital vs. 159681 | CareRay Digital 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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