Correlation Between Olympic Circuit and China Vanke
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By analyzing existing cross correlation between Olympic Circuit Technology and China Vanke Co, you can compare the effects of market volatilities on Olympic Circuit and China Vanke 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 Olympic Circuit with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and China Vanke.
Diversification Opportunities for Olympic Circuit and China Vanke
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Olympic and China is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Olympic Circuit 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 Olympic Circuit Technology are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and China Vanke go up and down completely randomly.
Pair Corralation between Olympic Circuit and China Vanke
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.26 times more return on investment than China Vanke. However, Olympic Circuit is 1.26 times more volatile than China Vanke Co. It trades about 0.15 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.02 per unit of risk. If you would invest 3,118 in Olympic Circuit Technology on October 28, 2024 and sell it today you would earn a total of 332.00 from holding Olympic Circuit Technology or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. China Vanke Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| China Vanke |
Olympic Circuit and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and China Vanke
The main advantage of trading using opposite Olympic Circuit and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Olympic Circuit vs. Chengdu Kanghua Biological | Olympic Circuit vs. Suzhou Novoprotein Scientific | Olympic Circuit vs. Aluminum Corp of | Olympic Circuit vs. COL Digital Publishing |
| China Vanke vs. Tsingtao Brewery Co | China Vanke vs. Will Semiconductor Co | China Vanke vs. Xiwang Foodstuffs Co | China Vanke vs. Puya Semiconductor Shanghai |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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