Correlation Between Olympic Circuit and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Olympic Circuit Technology and China Securities 800, you can compare the effects of market volatilities on Olympic Circuit and China Securities 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 Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and China Securities.
Diversification Opportunities for Olympic Circuit and China Securities
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Olympic and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and China Securities go up and down completely randomly.
Pair Corralation between Olympic Circuit and China Securities
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 4.41 times more return on investment than China Securities. However, Olympic Circuit is 4.41 times more volatile than China Securities 800. It trades about 0.19 of its potential returns per unit of risk. China Securities 800 is currently generating about 0.11 per unit of risk. If you would invest 2,882 in Olympic Circuit Technology on November 7, 2024 and sell it today you would earn a total of 347.00 from holding Olympic Circuit Technology or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. China Securities 800
Performance |
| Timeline |
Olympic Circuit and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and China Securities
The main advantage of trading using opposite Olympic Circuit and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, China Securities 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 Securities will offset losses from the drop in China Securities' long position.The idea behind Olympic Circuit Technology and China Securities 800 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |