Correlation Between G Bits and New China
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By analyzing existing cross correlation between G bits Network Technology and New China Life, you can compare the effects of market volatilities on G Bits and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and New China.
Diversification Opportunities for G Bits and New China
Very weak diversification
The 3 months correlation between 603444 and New is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of G Bits i.e., G Bits and New China go up and down completely randomly.
Pair Corralation between G Bits and New China
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the New China. In addition to that, G Bits is 1.23 times more volatile than New China Life. It trades about -0.02 of its total potential returns per unit of risk. New China Life is currently generating about 0.04 per unit of volatility. If you would invest 3,101 in New China Life on October 15, 2024 and sell it today you would earn a total of 1,400 from holding New China Life or generate 45.15% 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. New China Life
Performance |
| Timeline |
| G bits Network |
| New China Life |
G Bits and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and New China
The main advantage of trading using opposite G Bits and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| G Bits vs. Western Metal Materials | G Bits vs. Yili Chuanning Biotechnology | G Bits vs. Shandong Hongchuang Aluminum | G Bits vs. Ye Chiu Metal |
| New China vs. Jahen Household Products | New China vs. Xiangyu Medical Co | New China vs. Zhejiang Qianjiang Motorcycle | New China vs. Zhonghong Pulin Medical |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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