Correlation Between Strait Innovation and Olympic Circuit
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By analyzing existing cross correlation between Strait Innovation Internet and Olympic Circuit Technology, you can compare the effects of market volatilities on Strait Innovation 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 Strait Innovation with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Olympic Circuit.
Diversification Opportunities for Strait Innovation and Olympic Circuit
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strait and Olympic is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet 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 Strait Innovation 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 Strait Innovation Internet 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 Strait Innovation i.e., Strait Innovation and Olympic Circuit go up and down completely randomly.
Pair Corralation between Strait Innovation and Olympic Circuit
Assuming the 90 days trading horizon Strait Innovation Internet is expected to under-perform the Olympic Circuit. In addition to that, Strait Innovation is 1.05 times more volatile than Olympic Circuit Technology. It trades about -0.26 of its total potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.13 per unit of volatility. If you would invest 3,073 in Olympic Circuit Technology on October 17, 2024 and sell it today you would earn a total of 298.00 from holding Olympic Circuit Technology or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Olympic Circuit Technology
Performance |
| Timeline |
| Strait Innovation |
| Olympic Circuit Tech |
Strait Innovation and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Olympic Circuit
The main advantage of trading using opposite Strait Innovation and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation 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.| Strait Innovation vs. Beijing Sanyuan Foods | Strait Innovation vs. Guangdong Shenglu Telecommunication | Strait Innovation vs. Fujian Anjoy Foods | Strait Innovation vs. Wintao Communications Co |
| Olympic Circuit vs. Strait Innovation Internet | Olympic Circuit vs. Fiberhome Telecommunication Technologies | Olympic Circuit vs. Wuhan Yangtze Communication | Olympic Circuit vs. Suzhou Mingzhi Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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