Correlation Between G Bits and Chengdu Bright
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By analyzing existing cross correlation between G bits Network Technology and Chengdu Bright Eye, you can compare the effects of market volatilities on G Bits and Chengdu Bright 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 Chengdu Bright. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Chengdu Bright.
Diversification Opportunities for G Bits and Chengdu Bright
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 603444 and Chengdu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Chengdu Bright Eye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Bright Eye 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 Chengdu Bright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Bright Eye has no effect on the direction of G Bits i.e., G Bits and Chengdu Bright go up and down completely randomly.
Pair Corralation between G Bits and Chengdu Bright
Assuming the 90 days trading horizon G Bits is expected to generate 5.04 times less return on investment than Chengdu Bright. But when comparing it to its historical volatility, G bits Network Technology is 1.89 times less risky than Chengdu Bright. It trades about 0.05 of its potential returns per unit of risk. Chengdu Bright Eye is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,045 in Chengdu Bright Eye on September 12, 2024 and sell it today you would earn a total of 621.00 from holding Chengdu Bright Eye or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
G bits Network Technology vs. Chengdu Bright Eye
Performance |
| Timeline |
| G bits Network |
| Chengdu Bright Eye |
G Bits and Chengdu Bright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Chengdu Bright
The main advantage of trading using opposite G Bits and Chengdu Bright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Chengdu Bright 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 Chengdu Bright will offset losses from the drop in Chengdu Bright'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 |
| Chengdu Bright vs. Humanwell Healthcare Group | Chengdu Bright vs. Healthcare Co | Chengdu Bright vs. Chengdu Xingrong Investment | Chengdu Bright vs. Shaanxi Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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