Correlation Between Jiangsu Financial and Olympic Circuit
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Olympic Circuit Technology, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Olympic Circuit.
Diversification Opportunities for Jiangsu Financial and Olympic Circuit
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Olympic is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Olympic Circuit go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Olympic Circuit
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 2.54 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 2.01 times less risky than Olympic Circuit. It trades about 0.05 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 1,783 in Olympic Circuit Technology on September 30, 2024 and sell it today you would earn a total of 1,335 from holding Olympic Circuit Technology or generate 74.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Olympic Circuit Technology
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Olympic Circuit Tech |
Jiangsu Financial and Olympic Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Olympic Circuit
The main advantage of trading using opposite Jiangsu Financial and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Ming Yang Smart | Jiangsu Financial vs. 159681 | Jiangsu Financial vs. 159005 | Jiangsu Financial vs. Loctek Ergonomic Technology |
| Olympic Circuit vs. Industrial and Commercial | Olympic Circuit vs. China Construction Bank | Olympic Circuit vs. Agricultural Bank of | Olympic Circuit vs. Bank of China |
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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