Correlation Between Olympic Circuit and Guangzhou KingTeller
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By analyzing existing cross correlation between Olympic Circuit Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Olympic Circuit and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Guangzhou KingTeller.
Diversification Opportunities for Olympic Circuit and Guangzhou KingTeller
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Olympic and Guangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Olympic Circuit and Guangzhou KingTeller
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 0.91 times more return on investment than Guangzhou KingTeller. However, Olympic Circuit Technology is 1.1 times less risky than Guangzhou KingTeller. It trades about 0.06 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.04 per unit of risk. If you would invest 1,489 in Olympic Circuit Technology on August 27, 2024 and sell it today you would earn a total of 1,542 from holding Olympic Circuit Technology or generate 103.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Olympic Circuit Tech |
| Guangzhou KingTeller |
Olympic Circuit and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Guangzhou KingTeller
The main advantage of trading using opposite Olympic Circuit and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Olympic Circuit vs. Sinomach Automobile Co | Olympic Circuit vs. Hangzhou Coco Healthcare | Olympic Circuit vs. Guangdong Shenglu Telecommunication | Olympic Circuit vs. Hubei Yingtong Telecommunication |
| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. China Construction Bank |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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