Correlation Between Olympic Circuit and Wangneng Environment
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By analyzing existing cross correlation between Olympic Circuit Technology and Wangneng Environment Co, you can compare the effects of market volatilities on Olympic Circuit and Wangneng Environment 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 Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Wangneng Environment.
Diversification Opportunities for Olympic Circuit and Wangneng Environment
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Olympic and Wangneng is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment 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 Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Wangneng Environment go up and down completely randomly.
Pair Corralation between Olympic Circuit and Wangneng Environment
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 2.21 times more return on investment than Wangneng Environment. However, Olympic Circuit is 2.21 times more volatile than Wangneng Environment Co. It trades about 0.06 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about -0.02 per unit of risk. If you would invest 1,563 in Olympic Circuit Technology on October 16, 2024 and sell it today you would earn a total of 1,576 from holding Olympic Circuit Technology or generate 100.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Wangneng Environment Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| Wangneng Environment |
Olympic Circuit and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Wangneng Environment
The main advantage of trading using opposite Olympic Circuit and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's long position.| Olympic Circuit vs. Beijing Bewinner Communications | Olympic Circuit vs. Harbin Air Conditioning | Olympic Circuit vs. Runjian Communication Co | Olympic Circuit vs. Air China Ltd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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