Correlation Between GDS Holdings and BIT Mining
Can any of the company-specific risk be diversified away by investing in both GDS Holdings and BIT Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GDS Holdings and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDS Holdings and BIT Mining, you can compare the effects of market volatilities on GDS Holdings and BIT Mining 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 GDS Holdings with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDS Holdings and BIT Mining.
Diversification Opportunities for GDS Holdings and BIT Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GDS and BIT is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GDS Holdings and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and GDS Holdings 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 GDS Holdings are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of GDS Holdings i.e., GDS Holdings and BIT Mining go up and down completely randomly.
Pair Corralation between GDS Holdings and BIT Mining
Considering the 90-day investment horizon GDS Holdings is expected to under-perform the BIT Mining. In addition to that, GDS Holdings is 1.06 times more volatile than BIT Mining. It trades about -0.1 of its total potential returns per unit of risk. BIT Mining is currently generating about 0.01 per unit of volatility. If you would invest 291.00 in BIT Mining on August 30, 2024 and sell it today you would lose (5.00) from holding BIT Mining or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GDS Holdings vs. BIT Mining
Performance |
| Timeline |
| GDS Holdings |
| BIT Mining |
GDS Holdings and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDS Holdings and BIT Mining
The main advantage of trading using opposite GDS Holdings and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDS Holdings position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| GDS Holdings vs. Oneconnect Financial Technology | GDS Holdings vs. Global Business Travel | GDS Holdings vs. Alight Inc | GDS Holdings vs. CS Disco LLC |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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