Correlation Between IRay Technology and New China
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By analyzing existing cross correlation between iRay Technology Co and New China Life, you can compare the effects of market volatilities on IRay Technology 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 IRay Technology with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRay Technology and New China.
Diversification Opportunities for IRay Technology and New China
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IRay and New is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iRay Technology Co 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 IRay Technology 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 iRay Technology Co 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 IRay Technology i.e., IRay Technology and New China go up and down completely randomly.
Pair Corralation between IRay Technology and New China
Assuming the 90 days trading horizon iRay Technology Co is expected to under-perform the New China. In addition to that, IRay Technology is 1.14 times more volatile than New China Life. It trades about -0.19 of its total potential returns per unit of risk. New China Life is currently generating about 0.18 per unit of volatility. If you would invest 4,577 in New China Life on September 24, 2024 and sell it today you would earn a total of 387.00 from holding New China Life or generate 8.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
iRay Technology Co vs. New China Life
Performance |
Timeline |
iRay Technology |
New China Life |
IRay Technology and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IRay Technology and New China
The main advantage of trading using opposite IRay Technology and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRay Technology 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.IRay Technology vs. New China Life | IRay Technology vs. Ming Yang Smart | IRay Technology vs. 159681 | IRay Technology vs. 159005 |
New China vs. Ye Chiu Metal | New China vs. Western Metal Materials | New China vs. Tianshan Aluminum Group | New China vs. Marssenger Kitchenware Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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