Correlation Between G-bits Network and Shandong Sanyuan
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By analyzing existing cross correlation between G bits Network Technology and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on G-bits Network and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-bits Network and Shandong Sanyuan.
Diversification Opportunities for G-bits Network and Shandong Sanyuan
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between G-bits and Shandong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of G-bits Network i.e., G-bits Network and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between G-bits Network and Shandong Sanyuan
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Shandong Sanyuan. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.31 times less risky than Shandong Sanyuan. The stock trades about -0.02 of its potential returns per unit of risk. The Shandong Sanyuan Biotechnology is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,468 in Shandong Sanyuan Biotechnology on November 7, 2024 and sell it today you would earn a total of 133.00 from holding Shandong Sanyuan Biotechnology or generate 5.39% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| G bits Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shandong Sanyuan Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
G-bits Network and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-bits Network and Shandong Sanyuan
The main advantage of trading using opposite G-bits Network and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-bits Network position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.The idea behind G bits Network Technology and Shandong Sanyuan Biotechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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