Correlation Between G Bits and Hengdian Entertainment
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By analyzing existing cross correlation between G bits Network Technology and Hengdian Entertainment Co, you can compare the effects of market volatilities on G Bits and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Hengdian Entertainment.
Diversification Opportunities for G Bits and Hengdian Entertainment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 603444 and Hengdian is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of G Bits i.e., G Bits and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between G Bits and Hengdian Entertainment
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Hengdian Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.05 times less risky than Hengdian Entertainment. The stock trades about -0.04 of its potential returns per unit of risk. The Hengdian Entertainment Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Hengdian Entertainment Co on September 12, 2024 and sell it today you would lose (125.00) from holding Hengdian Entertainment Co or give up 7.31% 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. Hengdian Entertainment Co
Performance |
| Timeline |
| G bits Network |
| Hengdian Entertainment |
G Bits and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Hengdian Entertainment
The main advantage of trading using opposite G Bits and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment'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 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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