Correlation Between XinJiang GuoTong and Olympic Circuit
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Olympic Circuit Technology, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Olympic Circuit.
Diversification Opportunities for XinJiang GuoTong and Olympic Circuit
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XinJiang and Olympic is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline 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 XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Olympic Circuit go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Olympic Circuit
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Olympic Circuit. In addition to that, XinJiang GuoTong is 1.12 times more volatile than Olympic Circuit Technology. It trades about -0.04 of its total potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.05 per unit of volatility. If you would invest 3,088 in Olympic Circuit Technology on October 30, 2024 and sell it today you would earn a total of 141.00 from holding Olympic Circuit Technology or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Olympic Circuit Technology
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Olympic Circuit Tech |
XinJiang GuoTong and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Olympic Circuit
The main advantage of trading using opposite XinJiang GuoTong and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Jiangsu Financial Leasing | XinJiang GuoTong vs. East Money Information | XinJiang GuoTong vs. Rising Nonferrous Metals | XinJiang GuoTong vs. Emdoor Information Co |
| Olympic Circuit vs. Beijing Bewinner Communications | Olympic Circuit vs. Thunder Software Technology | Olympic Circuit vs. TianJin 712 Communication | Olympic Circuit vs. Wuhan Yangtze Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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