Correlation Between G Bits and China Life
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By analyzing existing cross correlation between G bits Network Technology and China Life Insurance, you can compare the effects of market volatilities on G Bits and China Life 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 China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and China Life.
Diversification Opportunities for G Bits and China Life
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 603444 and China is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of G Bits i.e., G Bits and China Life go up and down completely randomly.
Pair Corralation between G Bits and China Life
Assuming the 90 days trading horizon G Bits is expected to generate 1.09 times less return on investment than China Life. In addition to that, G Bits is 1.03 times more volatile than China Life Insurance. It trades about 0.07 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.08 per unit of volatility. If you would invest 3,680 in China Life Insurance on September 24, 2024 and sell it today you would earn a total of 463.00 from holding China Life Insurance or generate 12.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G bits Network Technology vs. China Life Insurance
Performance |
Timeline |
G bits Network |
China Life Insurance |
G Bits and China Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Bits and China Life
The main advantage of trading using opposite G Bits and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.G Bits vs. Changchun UP Optotech | G Bits vs. Ningxia Building Materials | G Bits vs. Guangzhou KingTeller Technology | G Bits vs. Kangping Technology Co |
China Life vs. Kweichow Moutai Co | China Life vs. Shenzhen Mindray Bio Medical | China Life vs. Jiangsu Pacific Quartz | China Life 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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