Correlation Between G Bits and Dow Jones
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By analyzing existing cross correlation between G bits Network Technology and Dow Jones Industrial, you can compare the effects of market volatilities on G Bits and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Dow Jones.
Diversification Opportunities for G Bits and Dow Jones
Very weak diversification
The 3 months correlation between 603444 and Dow is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of G Bits i.e., G Bits and Dow Jones go up and down completely randomly.
Pair Corralation between G Bits and Dow Jones
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Dow Jones. In addition to that, G Bits is 4.22 times more volatile than Dow Jones Industrial. It trades about -0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of volatility. If you would invest 3,389,102 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 1,040,549 from holding Dow Jones Industrial or generate 30.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.48% |
| Values | Daily Returns |
G bits Network Technology vs. Dow Jones Industrial
Performance |
| Timeline |
G Bits and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
G bits Network Technology
Pair trading matchups for G Bits
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with G Bits and Dow Jones
The main advantage of trading using opposite G Bits and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| G Bits vs. Fujian Longzhou Transportation | G Bits vs. Sportsoul Co Ltd | G Bits vs. CIMC Vehicles Co | G Bits vs. Eastern Air Logistics |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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