Correlation Between Xinjiang Communications and G Bits
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By analyzing existing cross correlation between Xinjiang Communications Construction and G bits Network Technology, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and G Bits.
Diversification Opportunities for Xinjiang Communications and G Bits
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and 603444 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr 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 Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and G Bits go up and down completely randomly.
Pair Corralation between Xinjiang Communications and G Bits
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.09 times more return on investment than G Bits. However, Xinjiang Communications is 1.09 times more volatile than G bits Network Technology. It trades about 0.18 of its potential returns per unit of risk. G bits Network Technology is currently generating about 0.01 per unit of risk. If you would invest 946.00 in Xinjiang Communications Construction on August 26, 2024 and sell it today you would earn a total of 275.00 from holding Xinjiang Communications Construction or generate 29.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. G bits Network Technology
Performance |
| Timeline |
| Xinjiang Communications |
| G bits Network |
Xinjiang Communications and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and G Bits
The main advantage of trading using opposite Xinjiang Communications and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. China Construction Bank | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Bank of China |
| G Bits vs. Shanghai Zhangjiang Hi Tech | G Bits vs. Guangzhou Haige Communications | G Bits vs. Fujian Newland Computer | G Bits vs. Fiberhome Telecommunication Technologies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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