Correlation Between Changchun High and G-bits Network
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By analyzing existing cross correlation between Changchun High New and G bits Network Technology, you can compare the effects of market volatilities on Changchun High 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 Changchun High with a short position of G-bits Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and G-bits Network.
Diversification Opportunities for Changchun High and G-bits Network
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changchun and G-bits is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New 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 Changchun High 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 Changchun High New 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 Changchun High i.e., Changchun High and G-bits Network go up and down completely randomly.
Pair Corralation between Changchun High and G-bits Network
Assuming the 90 days trading horizon Changchun High is expected to generate 3.65 times less return on investment than G-bits Network. But when comparing it to its historical volatility, Changchun High New is 2.32 times less risky than G-bits Network. It trades about 0.3 of its potential returns per unit of risk. G bits Network Technology is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 20,761 in G bits Network Technology on November 18, 2024 and sell it today you would earn a total of 3,496 from holding G bits Network Technology or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. G bits Network Technology
Performance |
| Timeline |
| Changchun High New |
| G bits Network |
Changchun High and G-bits Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and G-bits Network
The main advantage of trading using opposite Changchun High and G-bits Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High 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.| Changchun High vs. Guolin Environmental Tech | Changchun High vs. Dazhong Transportation Group | Changchun High vs. GreenTech Environmental Co | Changchun High vs. Penyao Environmental Protection |
| G-bits Network vs. Harbin Hatou Investment | G-bits Network vs. Guizhou Chanhen Chemical | G-bits Network vs. Beijing Mainstreets Investment | G-bits Network vs. Cultural Investment Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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