Correlation Between G Bits and Guangzhou KingTeller
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By analyzing existing cross correlation between G bits Network Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on G Bits and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Guangzhou KingTeller.
Diversification Opportunities for G Bits and Guangzhou KingTeller
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 603444 and Guangzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of G Bits i.e., G Bits and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between G Bits and Guangzhou KingTeller
Assuming the 90 days trading horizon G Bits is expected to generate 7.92 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, G bits Network Technology is 1.87 times less risky than Guangzhou KingTeller. It trades about 0.05 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Guangzhou KingTeller Technology on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Guangzhou KingTeller Technology or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| G bits Network |
| Guangzhou KingTeller |
G Bits and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Guangzhou KingTeller
The main advantage of trading using opposite G Bits and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| G Bits vs. Shaanxi Construction Machinery | G Bits vs. Huitong Construction Group | G Bits vs. Nanxing Furniture Machinery | G Bits vs. China Asset Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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