Correlation Between JiShi Media and G Bits

Can any of the company-specific risk be diversified away by investing in both JiShi Media and G Bits 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 JiShi Media and G Bits into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JiShi Media Co and G bits Network Technology, you can compare the effects of market volatilities on JiShi Media 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 JiShi Media with a short position of G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and G Bits.

Diversification Opportunities for JiShi Media and G Bits

0.49

Correlation Coefficient

JiShi Media  G Bits

Very weak diversification

The 3 months correlation between JiShi and 603444 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co 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 JiShi Media 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 JiShi Media Co 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 JiShi Media i.e., JiShi Media and G Bits go up and down completely randomly.

Pair Corralation between JiShi Media and G Bits

Assuming the 90 days trading horizon JiShi Media Co is expected to generate 1.15 times more return on investment than G Bits. However, JiShi Media is 1.15 times more volatile than G bits Network Technology. It trades about 0.01 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  212.00  in JiShi Media Co on December 2, 2024 and sell it today you would lose (12.00) from holding JiShi Media Co or give up 5.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

JiShi Media Co  vs.  G bits Network Technology

JiShi Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JiShi Media Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, JiShi Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

G bits Network

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in G bits Network Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, G Bits is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JiShi Media and G Bits

The main advantage of trading using opposite JiShi Media and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media 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.

The idea behind JiShi Media Co and G bits Network Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.