Correlation Between G Bits and Digital China
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By analyzing existing cross correlation between G bits Network Technology and Digital China Information, you can compare the effects of market volatilities on G Bits and Digital China 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 Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Digital China.
Diversification Opportunities for G Bits and Digital China
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 603444 and Digital is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information 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 Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of G Bits i.e., G Bits and Digital China go up and down completely randomly.
Pair Corralation between G Bits and Digital China
Assuming the 90 days trading horizon G bits Network Technology is expected to under-perform the Digital China. In addition to that, G Bits is 1.02 times more volatile than Digital China Information. It trades about -0.02 of its total potential returns per unit of risk. Digital China Information is currently generating about 0.02 per unit of volatility. If you would invest 1,137 in Digital China Information on September 26, 2024 and sell it today you would earn a total of 102.00 from holding Digital China Information or generate 8.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G bits Network Technology vs. Digital China Information
Performance |
Timeline |
G bits Network |
Digital China Information |
G Bits and Digital China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Bits and Digital China
The main advantage of trading using opposite G Bits and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.G Bits vs. Shengda Mining Co | G Bits vs. Tianjin Pengling Rubber | G Bits vs. Tibet Huayu Mining | G Bits vs. Jiangxi Naipu Mining |
Digital China vs. Kweichow Moutai Co | Digital China vs. Shenzhen Mindray Bio Medical | Digital China vs. Jiangsu Pacific Quartz | Digital China vs. G bits Network Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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