Correlation Between G Bits and Liaoning Chengda
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By analyzing existing cross correlation between G bits Network Technology and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on G Bits and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Liaoning Chengda.
Diversification Opportunities for G Bits and Liaoning Chengda
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603444 and Liaoning is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of G Bits i.e., G Bits and Liaoning Chengda go up and down completely randomly.
Pair Corralation between G Bits and Liaoning Chengda
Assuming the 90 days trading horizon G bits Network Technology is expected to generate 1.39 times more return on investment than Liaoning Chengda. However, G Bits is 1.39 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.06 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.04 per unit of risk. If you would invest 18,755 in G bits Network Technology on September 12, 2024 and sell it today you would earn a total of 3,590 from holding G bits Network Technology or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G bits Network Technology vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| G bits Network |
| Liaoning Chengda Bio |
G Bits and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Bits and Liaoning Chengda
The main advantage of trading using opposite G Bits and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda'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 |
| Liaoning Chengda vs. Cultural Investment Holdings | Liaoning Chengda vs. Gome Telecom Equipment | Liaoning Chengda vs. Holitech Technology Co | Liaoning Chengda vs. Zotye Automobile Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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