Correlation Between Dazhong Transportation and G Bits
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By analyzing existing cross correlation between Dazhong Transportation Group and G bits Network Technology, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and G Bits.
Diversification Opportunities for Dazhong Transportation and G Bits
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dazhong and 603444 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and G Bits go up and down completely randomly.
Pair Corralation between Dazhong Transportation and G Bits
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 0.88 times more return on investment than G Bits. However, Dazhong Transportation Group is 1.13 times less risky than G Bits. It trades about 0.09 of its potential returns per unit of risk. G bits Network Technology is currently generating about 0.06 per unit of risk. If you would invest 25.00 in Dazhong Transportation Group on September 5, 2024 and sell it today you would earn a total of 1.00 from holding Dazhong Transportation Group or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. G bits Network Technology
Performance |
| Timeline |
| Dazhong Transportation |
| G bits Network |
Dazhong Transportation and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and G Bits
The main advantage of trading using opposite Dazhong Transportation and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Kweichow Moutai Co | Dazhong Transportation vs. NAURA Technology Group | Dazhong Transportation vs. Zhejiang Orient Gene | Dazhong Transportation vs. APT Medical |
| G Bits vs. Hainan Haiqi Transportation | G Bits vs. Hubeiyichang Transportation Group | G Bits vs. Dazhong Transportation Group | G Bits vs. Cultural Investment Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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