Correlation Between G Bits and Long Yuan
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By analyzing existing cross correlation between G bits Network Technology and Long Yuan Construction, you can compare the effects of market volatilities on G Bits and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Long Yuan.
Diversification Opportunities for G Bits and Long Yuan
Average diversification
The 3 months correlation between 603444 and Long is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of G Bits i.e., G Bits and Long Yuan go up and down completely randomly.
Pair Corralation between G Bits and Long Yuan
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Long Yuan. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.52 times less risky than Long Yuan. The stock trades about -0.19 of its potential returns per unit of risk. The Long Yuan Construction is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 385.00 in Long Yuan Construction on October 23, 2024 and sell it today you would lose (26.00) from holding Long Yuan Construction or give up 6.75% 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. Long Yuan Construction
Performance |
| Timeline |
| G bits Network |
| Long Yuan Construction |
G Bits and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Long Yuan
The main advantage of trading using opposite G Bits and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| G Bits vs. Guangzhou Haige Communications | G Bits vs. Shenzhen Glory Medical | G Bits vs. Eastern Communications Co | G Bits vs. Hubei Yingtong Telecommunication |
| Long Yuan vs. Chengdu Kanghua Biological | Long Yuan vs. Beijing Wantai Biological | Long Yuan vs. Suzhou Novoprotein Scientific | Long Yuan vs. Aluminum Corp of |
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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