Correlation Between Olympic Circuit and Changchun
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By analyzing existing cross correlation between Olympic Circuit Technology and Changchun UP Optotech, you can compare the effects of market volatilities on Olympic Circuit and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Changchun.
Diversification Opportunities for Olympic Circuit and Changchun
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Olympic and Changchun is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Changchun go up and down completely randomly.
Pair Corralation between Olympic Circuit and Changchun
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.46 times more return on investment than Changchun. However, Olympic Circuit is 1.46 times more volatile than Changchun UP Optotech. It trades about 0.25 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.01 per unit of risk. If you would invest 2,926 in Olympic Circuit Technology on October 23, 2024 and sell it today you would earn a total of 539.00 from holding Olympic Circuit Technology or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Changchun UP Optotech
Performance |
| Timeline |
| Olympic Circuit Tech |
| Changchun UP Optotech |
Olympic Circuit and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Changchun
The main advantage of trading using opposite Olympic Circuit and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Olympic Circuit vs. Changchun UP Optotech | Olympic Circuit vs. HeNan Splendor Science | Olympic Circuit vs. Jiangsu Financial Leasing | Olympic Circuit vs. Digiwin Software Co |
| Changchun vs. Hubei Xingfa Chemicals | Changchun vs. Meinian Onehealth Healthcare | Changchun vs. Sanbo Hospital Management | Changchun vs. Impulse Qingdao Health |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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