Correlation Between Western Metal and G Bits
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By analyzing existing cross correlation between Western Metal Materials and G bits Network Technology, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and G Bits.
Diversification Opportunities for Western Metal and G Bits
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and 603444 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and G Bits go up and down completely randomly.
Pair Corralation between Western Metal and G Bits
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.52 times more return on investment than G Bits. However, Western Metal is 1.52 times more volatile than G bits Network Technology. It trades about 0.07 of its potential returns per unit of risk. G bits Network Technology is currently generating about 0.02 per unit of risk. If you would invest 1,643 in Western Metal Materials on October 28, 2024 and sell it today you would earn a total of 121.00 from holding Western Metal Materials or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. G bits Network Technology
Performance |
| Timeline |
| Western Metal Materials |
| G bits Network |
Western Metal and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and G Bits
The main advantage of trading using opposite Western Metal and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
| G Bits vs. Epoxy Base Electronic | G Bits vs. Jiangyin Jianghua Microelectronics | G Bits vs. YiDong Electronics Technology | G Bits vs. Integrated Electronic Systems |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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