Correlation Between Shanghai CEO and G Bits
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By analyzing existing cross correlation between Shanghai CEO Environmental and G bits Network Technology, you can compare the effects of market volatilities on Shanghai CEO and G Bits 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 Shanghai CEO with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and G Bits.
Diversification Opportunities for Shanghai CEO and G Bits
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and 603444 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network and Shanghai CEO 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 Shanghai CEO Environmental are associated (or correlated) with G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and G Bits go up and down completely randomly.
Pair Corralation between Shanghai CEO and G Bits
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 15.74 times more return on investment than G Bits. However, Shanghai CEO is 15.74 times more volatile than G bits Network Technology. It trades about 0.04 of its potential returns per unit of risk. G bits Network Technology is currently generating about -0.02 per unit of risk. If you would invest 2,287 in Shanghai CEO Environmental on October 15, 2024 and sell it today you would lose (1,491) from holding Shanghai CEO Environmental or give up 65.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. G bits Network Technology
Performance |
| Timeline |
| Shanghai CEO Environ |
| G bits Network |
Shanghai CEO and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and G Bits
The main advantage of trading using opposite Shanghai CEO and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.| Shanghai CEO vs. Zhejiang Kingland Pipeline | Shanghai CEO vs. Sharetronic Data Technology | Shanghai CEO vs. HUAQIN TECHNOLOGY LTD | Shanghai CEO vs. Sinofibers Technology Co |
| G Bits vs. Anhui Huilong Agricultural | G Bits vs. Bank of Suzhou | G Bits vs. Masterwork Machinery | G Bits vs. Peoples Insurance of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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