Correlation Between Shengyuan Environmental and G Bits
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By analyzing existing cross correlation between Shengyuan Environmental Protection and G bits Network Technology, you can compare the effects of market volatilities on Shengyuan Environmental 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 Shengyuan Environmental with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengyuan Environmental and G Bits.
Diversification Opportunities for Shengyuan Environmental and G Bits
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengyuan and 603444 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shengyuan Environmental Protec 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 Shengyuan Environmental 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 Shengyuan Environmental Protection 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 Shengyuan Environmental i.e., Shengyuan Environmental and G Bits go up and down completely randomly.
Pair Corralation between Shengyuan Environmental and G Bits
Assuming the 90 days trading horizon Shengyuan Environmental Protection is expected to generate 0.96 times more return on investment than G Bits. However, Shengyuan Environmental Protection is 1.04 times less risky than G Bits. It trades about -0.01 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 1,592 in Shengyuan Environmental Protection on August 26, 2024 and sell it today you would lose (226.00) from holding Shengyuan Environmental Protection or give up 14.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengyuan Environmental Protec vs. G bits Network Technology
Performance |
| Timeline |
| Shengyuan Environmental |
| G bits Network |
Shengyuan Environmental and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengyuan Environmental and G Bits
The main advantage of trading using opposite Shengyuan Environmental and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengyuan Environmental 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.| Shengyuan Environmental vs. China Petroleum Chemical | Shengyuan Environmental vs. PetroChina Co Ltd | Shengyuan Environmental vs. China State Construction | Shengyuan Environmental vs. China Railway Group |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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