Correlation Between BIT Computer and CG Hi
Can any of the company-specific risk be diversified away by investing in both BIT Computer and CG Hi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BIT Computer and CG Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and CG Hi Tech, you can compare the effects of market volatilities on BIT Computer and CG Hi 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 BIT Computer with a short position of CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and CG Hi.
Diversification Opportunities for BIT Computer and CG Hi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIT and 264660 is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech and BIT Computer 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 BIT Computer Co are associated (or correlated) with CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of BIT Computer i.e., BIT Computer and CG Hi go up and down completely randomly.
Pair Corralation between BIT Computer and CG Hi
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 1.36 times more return on investment than CG Hi. However, BIT Computer is 1.36 times more volatile than CG Hi Tech. It trades about 0.0 of its potential returns per unit of risk. CG Hi Tech is currently generating about 0.0 per unit of risk. If you would invest 607,442 in BIT Computer Co on September 3, 2024 and sell it today you would lose (106,442) from holding BIT Computer Co or give up 17.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. CG Hi Tech
Performance |
| Timeline |
| BIT Computer |
| CG Hi Tech |
BIT Computer and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and CG Hi
The main advantage of trading using opposite BIT Computer and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| BIT Computer vs. CKH Food Health | BIT Computer vs. Polaris Office Corp | BIT Computer vs. Cuckoo Homesys Co | BIT Computer vs. Samlip General Foods |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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