Correlation Between G Bits and Sinocat Environmental
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By analyzing existing cross correlation between G bits Network Technology and Sinocat Environmental Technology, you can compare the effects of market volatilities on G Bits and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Sinocat Environmental.
Diversification Opportunities for G Bits and Sinocat Environmental
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 603444 and Sinocat is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of G Bits i.e., G Bits and Sinocat Environmental go up and down completely randomly.
Pair Corralation between G Bits and Sinocat Environmental
Assuming the 90 days trading horizon G bits Network Technology is expected to generate 0.77 times more return on investment than Sinocat Environmental. However, G bits Network Technology is 1.29 times less risky than Sinocat Environmental. It trades about -0.01 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.01 per unit of risk. If you would invest 27,240 in G bits Network Technology on September 14, 2024 and sell it today you would lose (4,440) from holding G bits Network Technology or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| G bits Network |
| Sinocat Environmental |
G Bits and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Sinocat Environmental
The main advantage of trading using opposite G Bits and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| G Bits vs. Invengo Information Technology | G Bits vs. GRINM Semiconductor Materials | G Bits vs. GigaDevice SemiconductorBeiji | G Bits vs. Guangzhou Dongfang Hotel |
| Sinocat Environmental vs. BeiGene | Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Beijing Roborock Technology | Sinocat Environmental vs. G bits Network Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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