Correlation Between Chengdu Spaceon and Olympic Circuit
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Olympic Circuit Technology, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Olympic Circuit.
Diversification Opportunities for Chengdu Spaceon and Olympic Circuit
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Olympic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Olympic Circuit go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Olympic Circuit
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to under-perform the Olympic Circuit. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Spaceon Electronics is 1.62 times less risky than Olympic Circuit. The stock trades about -0.09 of its potential returns per unit of risk. The Olympic Circuit Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,761 in Olympic Circuit Technology on August 30, 2024 and sell it today you would earn a total of 168.00 from holding Olympic Circuit Technology or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Olympic Circuit Technology
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Olympic Circuit Tech |
Chengdu Spaceon and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Olympic Circuit
The main advantage of trading using opposite Chengdu Spaceon and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Bank of China | Chengdu Spaceon vs. China Construction Bank |
| Olympic Circuit vs. Cultural Investment Holdings | Olympic Circuit vs. Gome Telecom Equipment | Olympic Circuit vs. Bus Online Co | Olympic Circuit vs. Holitech Technology Co |
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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