Correlation Between Sinomach General and G Bits
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By analyzing existing cross correlation between Sinomach General Machinery and G bits Network Technology, you can compare the effects of market volatilities on Sinomach General 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 Sinomach General with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and G Bits.
Diversification Opportunities for Sinomach General and G Bits
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinomach and 603444 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery 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 Sinomach General 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 Sinomach General Machinery 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 Sinomach General i.e., Sinomach General and G Bits go up and down completely randomly.
Pair Corralation between Sinomach General and G Bits
Assuming the 90 days trading horizon Sinomach General Machinery is expected to under-perform the G Bits. In addition to that, Sinomach General is 1.21 times more volatile than G bits Network Technology. It trades about -0.1 of its total potential returns per unit of risk. G bits Network Technology is currently generating about -0.04 per unit of volatility. If you would invest 21,670 in G bits Network Technology on October 18, 2024 and sell it today you would lose (484.00) from holding G bits Network Technology or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. G bits Network Technology
Performance |
| Timeline |
| Sinomach General Mac |
| G bits Network |
Sinomach General and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and G Bits
The main advantage of trading using opposite Sinomach General and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General 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.| Sinomach General vs. Kuangda Technology Group | Sinomach General vs. Montage Technology Co | Sinomach General vs. Hoshine Silicon Ind | Sinomach General vs. Eyebright Medical Technology |
| G Bits vs. Rising Nonferrous Metals | G Bits vs. Jiaozuo Wanfang Aluminum | G Bits vs. Ningbo Construction Co | G Bits vs. Guangdong Jingyi Metal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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