Correlation Between G-bits Network and Guangdong Wens
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By analyzing existing cross correlation between G bits Network Technology and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on G-bits Network and Guangdong Wens 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 Network with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-bits Network and Guangdong Wens.
Diversification Opportunities for G-bits Network and Guangdong Wens
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between G-bits and Guangdong is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and G-bits Network 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of G-bits Network i.e., G-bits Network and Guangdong Wens go up and down completely randomly.
Pair Corralation between G-bits Network and Guangdong Wens
Assuming the 90 days trading horizon G bits Network Technology is expected to generate 0.93 times more return on investment than Guangdong Wens. However, G bits Network Technology is 1.07 times less risky than Guangdong Wens. It trades about -0.02 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.06 per unit of risk. If you would invest 20,728 in G bits Network Technology on November 5, 2024 and sell it today you would lose (78.00) from holding G bits Network Technology or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| G bits Network |
| Guangdong Wens Foodstuff |
G-bits Network and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-bits Network and Guangdong Wens
The main advantage of trading using opposite G-bits Network and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-bits Network position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| G-bits Network vs. Nanjing Putian Telecommunications | G-bits Network vs. Jiamei Food Packaging | G-bits Network vs. JuneYao Dairy Co | G-bits Network vs. Jiahe Foods Industry |
| Guangdong Wens vs. Zijin Mining Group | Guangdong Wens vs. Zhejiang Yongjin Metal | Guangdong Wens vs. Xinjiang Baodi Mining | Guangdong Wens vs. Shenyang Huitian Thermal |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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