Correlation Between G Bits and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between G bits Network Technology and China Merchants Bank, you can compare the effects of market volatilities on G Bits and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and China Merchants.
Diversification Opportunities for G Bits and China Merchants
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 603444 and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of G Bits i.e., G Bits and China Merchants go up and down completely randomly.
Pair Corralation between G Bits and China Merchants
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the China Merchants. In addition to that, G Bits is 1.92 times more volatile than China Merchants Bank. It trades about -0.02 of its total potential returns per unit of risk. China Merchants Bank is currently generating about 0.02 per unit of volatility. If you would invest 3,648 in China Merchants Bank on September 26, 2024 and sell it today you would earn a total of 292.00 from holding China Merchants Bank or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. China Merchants Bank
Performance |
| Timeline |
| G bits Network |
| China Merchants Bank |
G Bits and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and China Merchants
The main advantage of trading using opposite G Bits and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| G Bits vs. Shanghai CEO Environmental | G Bits vs. Wintao Communications Co | G Bits vs. Shaanxi Meineng Clean | G Bits vs. Nanjing Putian Telecommunications |
| China Merchants vs. Kweichow Moutai Co | China Merchants vs. Contemporary Amperex Technology | China Merchants vs. G bits Network Technology | China Merchants vs. BYD Co Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |