Correlation Between G Bits and Shanghai Zhangjiang
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By analyzing existing cross correlation between G bits Network Technology and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on G Bits and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Shanghai Zhangjiang.
Diversification Opportunities for G Bits and Shanghai Zhangjiang
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 603444 and Shanghai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of G Bits i.e., G Bits and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between G Bits and Shanghai Zhangjiang
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Shanghai Zhangjiang. 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 Shanghai Zhangjiang. The stock trades about -0.12 of its potential returns per unit of risk. The Shanghai Zhangjiang Hi Tech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,387 in Shanghai Zhangjiang Hi Tech on August 30, 2024 and sell it today you would earn a total of 454.00 from holding Shanghai Zhangjiang Hi Tech or generate 19.02% 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| G bits Network |
| Shanghai Zhangjiang |
G Bits and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Shanghai Zhangjiang
The main advantage of trading using opposite G Bits and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| G Bits vs. Harbin Hatou Investment | G Bits vs. JiShi Media Co | G Bits vs. Metro Investment Development | G Bits vs. Zoje Resources 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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