Correlation Between Guangzhou Haige and Olympic Circuit
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haige Communications and Olympic Circuit Technology, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Olympic Circuit.
Diversification Opportunities for Guangzhou Haige and Olympic Circuit
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Olympic is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Olympic Circuit go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Olympic Circuit
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.64 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.23 times less risky than Olympic Circuit. It trades about 0.05 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,471 in Olympic Circuit Technology on August 30, 2024 and sell it today you would earn a total of 1,526 from holding Olympic Circuit Technology or generate 103.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Olympic Circuit Technology
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Olympic Circuit Tech |
Guangzhou Haige and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Olympic Circuit
The main advantage of trading using opposite Guangzhou Haige and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. China State Construction | Guangzhou Haige vs. Huafa Industrial Co | Guangzhou Haige vs. China International Capital | Guangzhou Haige vs. Kweichow Moutai Co |
| Olympic Circuit vs. Jilin Jlu Communication | Olympic Circuit vs. Eastern Communications Co | Olympic Circuit vs. Uxi Unicomp Technology | Olympic Circuit vs. Shenzhen Kexin 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |