Correlation Between Harbin Air and Olympic Circuit
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By analyzing existing cross correlation between Harbin Air Conditioning and Olympic Circuit Technology, you can compare the effects of market volatilities on Harbin Air 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 Harbin Air with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Olympic Circuit.
Diversification Opportunities for Harbin Air and Olympic Circuit
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Olympic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning 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 Harbin Air 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 Harbin Air Conditioning 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 Harbin Air i.e., Harbin Air and Olympic Circuit go up and down completely randomly.
Pair Corralation between Harbin Air and Olympic Circuit
Assuming the 90 days trading horizon Harbin Air is expected to generate 5.88 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Harbin Air Conditioning is 1.14 times less risky than Olympic Circuit. It trades about 0.01 of its potential returns per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Olympic Circuit Technology
Performance |
| Timeline |
| Harbin Air Conditioning |
| Olympic Circuit Tech |
Harbin Air and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Olympic Circuit
The main advantage of trading using opposite Harbin Air and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air 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.| Harbin Air vs. Tianshui Huatian Technology | Harbin Air vs. Bangyan Technology Co | Harbin Air vs. XinJiang GuoTong Pipeline | Harbin Air vs. Shaanxi Meineng Clean |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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