Correlation Between Olympic Circuit and CIMC Vehicles
Specify exactly 2 symbols:
By analyzing existing cross correlation between Olympic Circuit Technology and CIMC Vehicles Co, you can compare the effects of market volatilities on Olympic Circuit and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and CIMC Vehicles.
Diversification Opportunities for Olympic Circuit and CIMC Vehicles
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Olympic and CIMC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Olympic Circuit and CIMC Vehicles
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.49 times more return on investment than CIMC Vehicles. However, Olympic Circuit is 1.49 times more volatile than CIMC Vehicles Co. It trades about 0.18 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.09 per unit of risk. If you would invest 1,957 in Olympic Circuit Technology on September 2, 2024 and sell it today you would earn a total of 1,131 from holding Olympic Circuit Technology or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. CIMC Vehicles Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| CIMC Vehicles |
Olympic Circuit and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and CIMC Vehicles
The main advantage of trading using opposite Olympic Circuit and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Olympic Circuit vs. Cultural Investment Holdings | Olympic Circuit vs. Gome Telecom Equipment | Olympic Circuit vs. Bus Online Co | Olympic Circuit vs. Zotye Automobile Co |
| CIMC Vehicles vs. Kweichow Moutai Co | CIMC Vehicles vs. NAURA Technology Group | CIMC Vehicles vs. Zhejiang Orient Gene | CIMC Vehicles vs. APT Medical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |