Correlation Between Hengli Industrial and G Bits
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By analyzing existing cross correlation between Hengli Industrial Development and G bits Network Technology, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and G Bits.
Diversification Opportunities for Hengli Industrial and G Bits
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hengli and 603444 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and G Bits go up and down completely randomly.
Pair Corralation between Hengli Industrial and G Bits
Assuming the 90 days trading horizon Hengli Industrial is expected to generate 5.2 times less return on investment than G Bits. In addition to that, Hengli Industrial is 1.26 times more volatile than G bits Network Technology. It trades about 0.04 of its total potential returns per unit of risk. G bits Network Technology is currently generating about 0.27 per unit of volatility. If you would invest 20,650 in G bits Network Technology on November 27, 2024 and sell it today you would earn a total of 2,209 from holding G bits Network Technology or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. G bits Network Technology
Performance |
| Timeline |
| Hengli Industrial |
| G bits Network |
Hengli Industrial and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and G Bits
The main advantage of trading using opposite Hengli Industrial and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. Vohringer Home Technology | Hengli Industrial vs. Mengtian Home Group | Hengli Industrial vs. A Zenith Home Furnishings | Hengli Industrial vs. Hubei Forbon Technology |
| G Bits vs. Ligao Foods CoLtd | G Bits vs. Xinjiang Tianrun Dairy | G Bits vs. Zhejiang Yongjin Metal | G Bits vs. Jiahe Foods Industry |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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