Correlation Between Gansu Jiu and Olympic Circuit
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By analyzing existing cross correlation between Gansu Jiu Steel and Olympic Circuit Technology, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Olympic Circuit.
Diversification Opportunities for Gansu Jiu and Olympic Circuit
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Olympic is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel 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 Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Olympic Circuit go up and down completely randomly.
Pair Corralation between Gansu Jiu and Olympic Circuit
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Olympic Circuit. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.49 times less risky than Olympic Circuit. The stock trades about -0.49 of its potential returns per unit of risk. The Olympic Circuit Technology is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 3,180 in Olympic Circuit Technology on October 9, 2024 and sell it today you would lose (298.00) from holding Olympic Circuit Technology or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Olympic Circuit Technology
Performance |
| Timeline |
| Gansu Jiu Steel |
| Olympic Circuit Tech |
Gansu Jiu and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Olympic Circuit
The main advantage of trading using opposite Gansu Jiu and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining |
| Olympic Circuit vs. Shengda Mining Co | Olympic Circuit vs. China Satellite Communications | Olympic Circuit vs. Bank of Communications | Olympic Circuit vs. Pengxin International Mining |
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.
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