Correlation Between Olympic Circuit and Guangdong Shenglu
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By analyzing existing cross correlation between Olympic Circuit Technology and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Olympic Circuit and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Guangdong Shenglu.
Diversification Opportunities for Olympic Circuit and Guangdong Shenglu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Olympic and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Olympic Circuit and Guangdong Shenglu
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.08 times more return on investment than Guangdong Shenglu. However, Olympic Circuit is 1.08 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.05 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.0 per unit of risk. If you would invest 1,986 in Olympic Circuit Technology on September 1, 2024 and sell it today you would earn a total of 1,102 from holding Olympic Circuit Technology or generate 55.49% 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. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Olympic Circuit Tech |
| Guangdong Shenglu |
Olympic Circuit and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Guangdong Shenglu
The main advantage of trading using opposite Olympic Circuit and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Olympic Circuit vs. Nanjing Putian Telecommunications | Olympic Circuit vs. Ligao Foods CoLtd | Olympic Circuit vs. Anji Foodstuff Co | Olympic Circuit vs. Guangzhou Haige Communications |
| Guangdong Shenglu vs. Guocheng Mining Co | Guangdong Shenglu vs. Beijing SPC Environment | Guangdong Shenglu vs. Uroica Mining Safety | Guangdong Shenglu vs. Tongxing Environmental Protection |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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