Correlation Between Shengda Mining and Olympic Circuit
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By analyzing existing cross correlation between Shengda Mining Co and Olympic Circuit Technology, you can compare the effects of market volatilities on Shengda Mining 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 Shengda Mining with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Olympic Circuit.
Diversification Opportunities for Shengda Mining and Olympic Circuit
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shengda and Olympic is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co 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 Shengda Mining 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 Shengda Mining Co 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 Shengda Mining i.e., Shengda Mining and Olympic Circuit go up and down completely randomly.
Pair Corralation between Shengda Mining and Olympic Circuit
Assuming the 90 days trading horizon Shengda Mining is expected to generate 1.92 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Shengda Mining Co is 1.67 times less risky than Olympic Circuit. It trades about 0.23 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,912 in Olympic Circuit Technology on October 25, 2024 and sell it today you would earn a total of 588.00 from holding Olympic Circuit Technology or generate 20.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Olympic Circuit Technology
Performance |
| Timeline |
| Shengda Mining |
| Olympic Circuit Tech |
Shengda Mining and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Olympic Circuit
The main advantage of trading using opposite Shengda Mining and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining 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.| Shengda Mining vs. HeNan Splendor Science | Shengda Mining vs. Changchun UP Optotech | Shengda Mining vs. CGN Nuclear Technology | Shengda Mining vs. Ping An Insurance |
| Olympic Circuit vs. Kweichow Moutai Co | Olympic Circuit vs. NAURA Technology Group | Olympic Circuit vs. APT Medical | Olympic Circuit vs. BYD Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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