Correlation Between G Bits and Road Environment
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By analyzing existing cross correlation between G bits Network Technology and Road Environment Technology, you can compare the effects of market volatilities on G Bits and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and Road Environment.
Diversification Opportunities for G Bits and Road Environment
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 603444 and Road is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of G Bits i.e., G Bits and Road Environment go up and down completely randomly.
Pair Corralation between G Bits and Road Environment
Assuming the 90 days trading horizon G bits Network Technology is expected to generate 1.04 times more return on investment than Road Environment. However, G Bits is 1.04 times more volatile than Road Environment Technology. It trades about -0.02 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.05 per unit of risk. If you would invest 33,701 in G bits Network Technology on September 25, 2024 and sell it today you would lose (11,552) from holding G bits Network Technology or give up 34.28% 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. Road Environment Technology
Performance |
Timeline |
G bits Network |
Road Environment Tec |
G Bits and Road Environment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Bits and Road Environment
The main advantage of trading using opposite G Bits and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.G Bits vs. Metro Investment Development | G Bits vs. Focus Media Information | G Bits vs. Hangzhou Gisway Information | G Bits vs. Shenzhen SDG Information |
Road Environment vs. Sportsoul Co Ltd | Road Environment vs. Lander Sports Development | Road Environment vs. Shanghai Construction Group | Road Environment vs. China Railway Construction |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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