Correlation Between Runjian Communication and Olympic Circuit
Specify exactly 2 symbols:
By analyzing existing cross correlation between Runjian Communication Co and Olympic Circuit Technology, you can compare the effects of market volatilities on Runjian Communication 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 Runjian Communication with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Olympic Circuit.
Diversification Opportunities for Runjian Communication and Olympic Circuit
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Runjian and Olympic is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication 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 Runjian Communication 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 Runjian Communication 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 Runjian Communication i.e., Runjian Communication and Olympic Circuit go up and down completely randomly.
Pair Corralation between Runjian Communication and Olympic Circuit
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Olympic Circuit. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 1.01 times less risky than Olympic Circuit. The stock trades about -0.01 of its potential returns per unit of risk. The Olympic Circuit Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,563 in Olympic Circuit Technology on October 16, 2024 and sell it today you would earn a total of 1,576 from holding Olympic Circuit Technology or generate 100.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Olympic Circuit Technology
Performance |
| Timeline |
| Runjian Communication |
| Olympic Circuit Tech |
Runjian Communication and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Olympic Circuit
The main advantage of trading using opposite Runjian Communication and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication 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.| Runjian Communication vs. Heilongjiang Transport Development | Runjian Communication vs. Xiamen Bank Co | Runjian Communication vs. Bank of Suzhou | Runjian Communication vs. Rising Nonferrous Metals |
| Olympic Circuit vs. Songz Automobile Air | Olympic Circuit vs. Shandong Longquan Pipeline | Olympic Circuit vs. Haima Automobile Group | Olympic Circuit vs. XinJiang GuoTong Pipeline |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |