Correlation Between Olympic Circuit and Shandong Sino
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By analyzing existing cross correlation between Olympic Circuit Technology and Shandong Sino Agri United, you can compare the effects of market volatilities on Olympic Circuit and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Shandong Sino.
Diversification Opportunities for Olympic Circuit and Shandong Sino
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Olympic and Shandong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Shandong Sino go up and down completely randomly.
Pair Corralation between Olympic Circuit and Shandong Sino
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.16 times more return on investment than Shandong Sino. However, Olympic Circuit is 1.16 times more volatile than Shandong Sino Agri United. It trades about -0.13 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about -0.39 per unit of risk. If you would invest 3,138 in Olympic Circuit Technology on October 7, 2024 and sell it today you would lose (288.00) from holding Olympic Circuit Technology or give up 9.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Shandong Sino Agri United
Performance |
| Timeline |
| Olympic Circuit Tech |
| Shandong Sino Agri |
Olympic Circuit and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Shandong Sino
The main advantage of trading using opposite Olympic Circuit and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Olympic Circuit vs. PetroChina Co Ltd | Olympic Circuit vs. Gansu Jiu Steel | Olympic Circuit vs. Aba Chemicals Corp | Olympic Circuit vs. Yes Optoelectronics Co |
| Shandong Sino vs. Wuhan Hvsen Biotechnology | Shandong Sino vs. Hangzhou Pinming Software | Shandong Sino vs. Jinling Hotel Corp | Shandong Sino vs. Guangzhou Dongfang Hotel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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