Correlation Between G-bits Network and Inly Media

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

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

Diversification Opportunities for G-bits Network and Inly Media

0.45

Correlation Coefficient

G-bits Network  Inly Media

Very weak diversification

The 3 months correlation between G-bits and Inly is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Inly Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inly Media and G-bits Network 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 Inly Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inly Media has no effect on the direction of G-bits Network i.e., G-bits Network and Inly Media go up and down completely randomly.

Pair Corralation between G-bits Network and Inly Media

Assuming the 90 days trading horizon G-bits Network is expected to generate 3.05 times less return on investment than Inly Media. But when comparing it to its historical volatility, G bits Network Technology is 2.17 times less risky than Inly Media. It trades about 0.01 of its potential returns per unit of risk. Inly Media Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,741  in Inly Media Co on December 26, 2024 and sell it today you would lose (35.00) from holding Inly Media Co or give up 2.01% of portfolio value over 90 days.

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

G bits Network Technology  vs.  Inly Media Co

G bits Network

Risk-Adjusted Performance

Weak

Over the last 90 days G bits Network Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, G-bits Network is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Inly Media

Risk-Adjusted Performance

Insignificant

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

Pair Trading with G-bits Network and Inly Media

The main advantage of trading using opposite G-bits Network and Inly Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-bits Network position performs unexpectedly, Inly Media 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 Inly Media will offset losses from the drop in Inly Media's long position.

The idea behind G bits Network Technology and Inly Media Co 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.