Correlation Between G Bits and Hubei Yingtong
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By analyzing existing cross correlation between G bits Network Technology and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on G Bits and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Hubei Yingtong.
Diversification Opportunities for G Bits and Hubei Yingtong
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603444 and Hubei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of G Bits i.e., G Bits and Hubei Yingtong go up and down completely randomly.
Pair Corralation between G Bits and Hubei Yingtong
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.49 times less risky than Hubei Yingtong. The stock trades about -0.11 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,295 in Hubei Yingtong Telecommunication on August 27, 2024 and sell it today you would lose (21.00) from holding Hubei Yingtong Telecommunication or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| G bits Network |
| Hubei Yingtong Telec |
G Bits and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Hubei Yingtong
The main advantage of trading using opposite G Bits and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| 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 |
| Hubei Yingtong vs. Shenzhen MYS Environmental | Hubei Yingtong vs. AVIC Fund Management | Hubei Yingtong vs. Shenzhen Bingchuan Network | Hubei Yingtong vs. Penghua Shenzhen Energy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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