Correlation Between G Bits and Beijing Zhidemai
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By analyzing existing cross correlation between G bits Network Technology and Beijing Zhidemai Technology, you can compare the effects of market volatilities on G Bits and Beijing Zhidemai 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 Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Beijing Zhidemai.
Diversification Opportunities for G Bits and Beijing Zhidemai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603444 and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec 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 Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of G Bits i.e., G Bits and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between G Bits and Beijing Zhidemai
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Beijing Zhidemai. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.59 times less risky than Beijing Zhidemai. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Zhidemai Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,022 in Beijing Zhidemai Technology on August 29, 2024 and sell it today you would earn a total of 1,048 from holding Beijing Zhidemai Technology or generate 51.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
G bits Network Technology vs. Beijing Zhidemai Technology
Performance |
| Timeline |
| G bits Network |
| Beijing Zhidemai Tec |
G Bits and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Beijing Zhidemai
The main advantage of trading using opposite G Bits and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Beijing Zhidemai 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 Beijing Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| G Bits vs. Jiangsu Financial Leasing | G Bits vs. Dhc Software Co | G Bits vs. Xinke Material | G Bits vs. Cangzhou Mingzhu Plastic |
| Beijing Zhidemai vs. Kweichow Moutai Co | Beijing Zhidemai vs. Shenzhen Mindray Bio Medical | Beijing Zhidemai vs. Jiangsu Pacific Quartz | Beijing Zhidemai vs. G bits Network Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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