Correlation Between Shandong Longquan and Olympic Circuit
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Olympic Circuit Technology, you can compare the effects of market volatilities on Shandong Longquan 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 Shandong Longquan with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Olympic Circuit.
Diversification Opportunities for Shandong Longquan and Olympic Circuit
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Olympic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan 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 Shandong Longquan 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 Shandong Longquan 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 Shandong Longquan i.e., Shandong Longquan and Olympic Circuit go up and down completely randomly.
Pair Corralation between Shandong Longquan and Olympic Circuit
Assuming the 90 days trading horizon Shandong Longquan is expected to generate 17.85 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Shandong Longquan Pipeline is 1.81 times less risky than Olympic Circuit. It trades about 0.0 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Olympic Circuit Technology
Performance |
| Timeline |
| Shandong Longquan |
| Olympic Circuit Tech |
Shandong Longquan and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Olympic Circuit
The main advantage of trading using opposite Shandong Longquan and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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.| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Shandong Gold Mining |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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