Correlation Between Central China and G Bits
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By analyzing existing cross correlation between Central China Land and G bits Network Technology, you can compare the effects of market volatilities on Central China 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 Central China with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central China and G Bits.
Diversification Opportunities for Central China and G Bits
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Central and 603444 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Central China Land 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 Central China 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 Central China Land 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 Central China i.e., Central China and G Bits go up and down completely randomly.
Pair Corralation between Central China and G Bits
Assuming the 90 days trading horizon Central China Land is expected to under-perform the G Bits. In addition to that, Central China is 1.0 times more volatile than G bits Network Technology. It trades about -0.14 of its total potential returns per unit of risk. G bits Network Technology is currently generating about -0.11 per unit of volatility. If you would invest 21,127 in G bits Network Technology on August 29, 2024 and sell it today you would lose (1,357) from holding G bits Network Technology or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central China Land vs. G bits Network Technology
Performance |
| Timeline |
| Central China Land |
| G bits Network |
Central China and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central China and G Bits
The main advantage of trading using opposite Central China and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central China 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.| Central China vs. Industrial and Commercial | Central China vs. Agricultural Bank of | Central China vs. China Construction Bank | Central China vs. Bank of China |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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