Correlation Between G Bits and CICT Mobile
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By analyzing existing cross correlation between G bits Network Technology and CICT Mobile Communication, you can compare the effects of market volatilities on G Bits and CICT Mobile 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 CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and CICT Mobile.
Diversification Opportunities for G Bits and CICT Mobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603444 and CICT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication 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 CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of G Bits i.e., G Bits and CICT Mobile go up and down completely randomly.
Pair Corralation between G Bits and CICT Mobile
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the CICT Mobile. But the stock apears to be less risky and, when comparing its historical volatility, G bits Network Technology is 1.27 times less risky than CICT Mobile. The stock trades about -0.11 of its potential returns per unit of risk. The CICT Mobile Communication is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 641.00 in CICT Mobile Communication on August 27, 2024 and sell it today you would lose (29.00) from holding CICT Mobile Communication or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. CICT Mobile Communication
Performance |
| Timeline |
| G bits Network |
| CICT Mobile Communication |
G Bits and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and CICT Mobile
The main advantage of trading using opposite G Bits and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.| G Bits vs. Shanghai Zhangjiang Hi Tech | G Bits vs. Guangzhou Haige Communications | G Bits vs. Fujian Newland Computer | G Bits vs. Fiberhome Telecommunication Technologies |
| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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