Correlation Between Jilin Jlu and Olympic Circuit
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By analyzing existing cross correlation between Jilin Jlu Communication and Olympic Circuit Technology, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Olympic Circuit.
Diversification Opportunities for Jilin Jlu and Olympic Circuit
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jilin and Olympic is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication 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 Jilin Jlu 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 Jilin Jlu Communication 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 Jilin Jlu i.e., Jilin Jlu and Olympic Circuit go up and down completely randomly.
Pair Corralation between Jilin Jlu and Olympic Circuit
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.94 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Jilin Jlu Communication is 2.64 times less risky than Olympic Circuit. It trades about 0.32 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,229 in Olympic Circuit Technology on November 28, 2024 and sell it today you would earn a total of 628.00 from holding Olympic Circuit Technology or generate 19.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Olympic Circuit Technology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Olympic Circuit Tech |
Jilin Jlu and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Olympic Circuit
The main advantage of trading using opposite Jilin Jlu and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.| Jilin Jlu vs. Guangzhou Shangpin Home | Jilin Jlu vs. Ningbo Homelink Eco iTech | Jilin Jlu vs. Qumei Furniture Group | Jilin Jlu vs. Fiberhome Telecommunication Technologies |
| Olympic Circuit vs. Aba Chemicals Corp | Olympic Circuit vs. Sinomach Automobile Co | Olympic Circuit vs. Runjian Communication Co | Olympic Circuit vs. TianJin 712 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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