Correlation Between Ningbo Fangzheng and G Bits
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and G bits Network Technology, you can compare the effects of market volatilities on Ningbo Fangzheng 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 Ningbo Fangzheng with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and G Bits.
Diversification Opportunities for Ningbo Fangzheng and G Bits
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and 603444 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile 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 Ningbo Fangzheng 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 Ningbo Fangzheng Automobile 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 Ningbo Fangzheng i.e., Ningbo Fangzheng and G Bits go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and G Bits
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the G Bits. In addition to that, Ningbo Fangzheng is 1.21 times more volatile than G bits Network Technology. It trades about -0.24 of its total potential returns per unit of risk. G bits Network Technology is currently generating about -0.14 per unit of volatility. If you would invest 22,201 in G bits Network Technology on October 9, 2024 and sell it today you would lose (1,473) from holding G bits Network Technology or give up 6.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. G bits Network Technology
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| G bits Network |
Ningbo Fangzheng and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and G Bits
The main advantage of trading using opposite Ningbo Fangzheng and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng 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.| Ningbo Fangzheng vs. Suzhou Industrial Park | Ningbo Fangzheng vs. Tibet Huayu Mining | Ningbo Fangzheng vs. Servyou Software Group | Ningbo Fangzheng vs. Ye Chiu Metal |
| G Bits vs. Shenzhen Silver Basis | G Bits vs. Shenyang Blue Silver | G Bits vs. SUNSEA Telecommunications Co | G Bits vs. Ningbo Ligong Online |
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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