Correlation Between Shengtak New and CareRay Digital
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By analyzing existing cross correlation between Shengtak New Material and CareRay Digital Medical, you can compare the effects of market volatilities on Shengtak New 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 Shengtak New with a short position of CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and CareRay Digital.
Diversification Opportunities for Shengtak New and CareRay Digital
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengtak and CareRay is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material 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 Shengtak New 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 Shengtak New Material 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 Shengtak New i.e., Shengtak New and CareRay Digital go up and down completely randomly.
Pair Corralation between Shengtak New and CareRay Digital
Assuming the 90 days trading horizon Shengtak New Material is expected to under-perform the CareRay Digital. In addition to that, Shengtak New is 1.16 times more volatile than CareRay Digital Medical. It trades about -0.04 of its total potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.02 per unit of volatility. If you would invest 1,390 in CareRay Digital Medical on October 25, 2024 and sell it today you would earn a total of 12.00 from holding CareRay Digital Medical or generate 0.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shengtak New Material vs. CareRay Digital Medical
Performance |
Timeline |
Shengtak New Material |
CareRay Digital Medical |
Shengtak New and CareRay Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shengtak New and CareRay Digital
The main advantage of trading using opposite Shengtak New and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New 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.Shengtak New vs. Zijin Mining Group | Shengtak New vs. Wanhua Chemical Group | Shengtak New vs. Baoshan Iron Steel | Shengtak New vs. Rongsheng Petrochemical Co |
CareRay Digital vs. Agricultural Bank of | CareRay Digital vs. Industrial and Commercial | CareRay Digital vs. Bank of China | CareRay Digital vs. China Construction Bank |
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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