Correlation Between Luzhou Lao and G-bits Network
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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 Network 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 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and G-bits Network.
Diversification Opportunities for Luzhou Lao and G-bits Network
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Luzhou and G-bits is 0.16. 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 Network. 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 Network go up and down completely randomly.
Pair Corralation between Luzhou Lao and G-bits Network
Assuming the 90 days trading horizon Luzhou Lao Jiao is expected to under-perform the G-bits Network. But the stock apears to be less risky and, when comparing its historical volatility, Luzhou Lao Jiao is 1.48 times less risky than G-bits Network. The stock trades about -0.06 of its potential returns per unit of risk. The G bits Network Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 22,244 in G bits Network Technology on January 23, 2025 and sell it today you would lose (522.00) from holding G bits Network Technology or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| 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 Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luzhou Lao and G-bits Network
The main advantage of trading using opposite Luzhou Lao and G-bits Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao position performs unexpectedly, G-bits Network 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 Network will offset losses from the drop in G-bits Network's long position.| Luzhou Lao vs. Anhui Gujing Distillery | Luzhou Lao vs. Everdisplay Optronics Shanghai | Luzhou Lao vs. Pengxin International Mining | Luzhou Lao vs. Caihong Display Devices |
| G-bits Network vs. Shenzhen Shenbao Industrial | G-bits Network vs. Dalian Thermal Power | G-bits Network vs. Jilin Jlu Communication | G-bits Network vs. Pengxin International Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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