Correlation Between Haima Automobile and Olympic Circuit
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By analyzing existing cross correlation between Haima Automobile Group and Olympic Circuit Technology, you can compare the effects of market volatilities on Haima Automobile and Olympic Circuit 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 Haima Automobile with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Olympic Circuit.
Diversification Opportunities for Haima Automobile and Olympic Circuit
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Haima and Olympic is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Olympic Circuit Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympic Circuit Tech and Haima Automobile 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 Haima Automobile Group are associated (or correlated) with Olympic Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympic Circuit Tech has no effect on the direction of Haima Automobile i.e., Haima Automobile and Olympic Circuit go up and down completely randomly.
Pair Corralation between Haima Automobile and Olympic Circuit
Assuming the 90 days trading horizon Haima Automobile is expected to generate 7.84 times less return on investment than Olympic Circuit. In addition to that, Haima Automobile is 1.1 times more volatile than Olympic Circuit Technology. It trades about 0.01 of its total potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.07 per unit of volatility. If you would invest 1,460 in Olympic Circuit Technology on September 3, 2024 and sell it today you would earn a total of 1,628 from holding Olympic Circuit Technology or generate 111.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Olympic Circuit Technology
Performance |
| Timeline |
| Haima Automobile |
| Olympic Circuit Tech |
Haima Automobile and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Olympic Circuit
The main advantage of trading using opposite Haima Automobile and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Olympic Circuit 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 Olympic Circuit will offset losses from the drop in Olympic Circuit's long position.| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang Publishing Media |
| Olympic Circuit vs. Nuode Investment Co | Olympic Circuit vs. Jointo Energy Investment | Olympic Circuit vs. Shenzhen Centralcon Investment | Olympic Circuit vs. Haima Automobile Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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