Correlation Between Chengtun Mining and Olympic Circuit
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By analyzing existing cross correlation between Chengtun Mining Group and Olympic Circuit Technology, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Olympic Circuit.
Diversification Opportunities for Chengtun Mining and Olympic Circuit
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Olympic is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Olympic Circuit go up and down completely randomly.
Pair Corralation between Chengtun Mining and Olympic Circuit
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.84 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Chengtun Mining Group is 2.01 times less risky than Olympic Circuit. It trades about 0.21 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,022 in Olympic Circuit Technology on September 4, 2024 and sell it today you would earn a total of 1,280 from holding Olympic Circuit Technology or generate 63.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Olympic Circuit Technology
Performance |
| Timeline |
| Chengtun Mining Group |
| Olympic Circuit Tech |
Chengtun Mining and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Olympic Circuit
The main advantage of trading using opposite Chengtun Mining and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Dezhan HealthCare Co | Chengtun Mining vs. Kuangda Technology Group | Chengtun Mining vs. Soyea Technology Co | Chengtun Mining vs. Shanghai Rongtai Health |
| Olympic Circuit vs. Kingclean Electric Co | Olympic Circuit vs. CSSC Offshore Marine | Olympic Circuit vs. Huaibei Mining Holdings | Olympic Circuit vs. Chengtun Mining Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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