Correlation Between Luzhou Lao and G Bits
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By analyzing existing cross correlation between Luzhou Lao Jiao and G bits Network Technology, you can compare the effects of market volatilities on Luzhou Lao and G Bits 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 Luzhou Lao with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and G Bits.
Diversification Opportunities for Luzhou Lao and G Bits
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luzhou and 603444 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Luzhou Lao Jiao and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network and Luzhou Lao 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 Luzhou Lao Jiao are associated (or correlated) with G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Luzhou Lao i.e., Luzhou Lao and G Bits go up and down completely randomly.
Pair Corralation between Luzhou Lao and G Bits
Assuming the 90 days trading horizon Luzhou Lao Jiao is expected to generate 1.08 times more return on investment than G Bits. However, Luzhou Lao is 1.08 times more volatile than G bits Network Technology. It trades about -0.06 of its potential returns per unit of risk. G bits Network Technology is currently generating about -0.11 per unit of risk. If you would invest 14,264 in Luzhou Lao Jiao on August 29, 2024 and sell it today you would lose (577.00) from holding Luzhou Lao Jiao or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luzhou Lao Jiao vs. G bits Network Technology
Performance |
| Timeline |
| Luzhou Lao Jiao |
| G bits Network |
Luzhou Lao and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luzhou Lao and G Bits
The main advantage of trading using opposite Luzhou Lao and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.| Luzhou Lao vs. Saurer Intelligent Technology | Luzhou Lao vs. Fiberhome Telecommunication Technologies | Luzhou Lao vs. Jiujiang Shanshui Technology | Luzhou Lao vs. Western Superconducting Tech |
| G Bits vs. Rising Nonferrous Metals | G Bits vs. Suofeiya Home Collection | G Bits vs. Ye Chiu Metal | G Bits vs. Hengli Industrial Development |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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