Correlation Between G Bits and China Union
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By analyzing existing cross correlation between G bits Network Technology and China Union Holdings, you can compare the effects of market volatilities on G Bits and China Union 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 G Bits with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and China Union.
Diversification Opportunities for G Bits and China Union
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 603444 and China is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and G Bits 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 G bits Network Technology are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of G Bits i.e., G Bits and China Union go up and down completely randomly.
Pair Corralation between G Bits and China Union
Assuming the 90 days trading horizon G bits Network Technology is expected to generate 1.22 times more return on investment than China Union. However, G Bits is 1.22 times more volatile than China Union Holdings. It trades about -0.14 of its potential returns per unit of risk. China Union Holdings is currently generating about -0.71 per unit of risk. If you would invest 22,245 in G bits Network Technology on October 14, 2024 and sell it today you would lose (1,465) from holding G bits Network Technology or give up 6.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. China Union Holdings
Performance |
| Timeline |
| G bits Network |
| China Union Holdings |
G Bits and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and China Union
The main advantage of trading using opposite G Bits and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| G Bits vs. Shandong Iron and | G Bits vs. Universal Scientific Industrial | G Bits vs. Central Plains Environment | G Bits vs. Penyao Environmental Protection |
| China Union vs. Pengxin International Mining | China Union vs. Bosera CMSK Industrial | China Union vs. Hangzhou Gisway Information | China Union vs. Guangzhou Haozhi Industrial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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