Correlation Between Olympic Circuit and China Petroleum
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By analyzing existing cross correlation between Olympic Circuit Technology and China Petroleum Chemical, you can compare the effects of market volatilities on Olympic Circuit and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and China Petroleum.
Diversification Opportunities for Olympic Circuit and China Petroleum
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olympic and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and China Petroleum go up and down completely randomly.
Pair Corralation between Olympic Circuit and China Petroleum
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 4.04 times more return on investment than China Petroleum. However, Olympic Circuit is 4.04 times more volatile than China Petroleum Chemical. It trades about 0.15 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.41 per unit of risk. If you would invest 2,937 in Olympic Circuit Technology on November 3, 2024 and sell it today you would earn a total of 292.00 from holding Olympic Circuit Technology or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. China Petroleum Chemical
Performance |
| Timeline |
| Olympic Circuit Tech |
| China Petroleum Chemical |
Olympic Circuit and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and China Petroleum
The main advantage of trading using opposite Olympic Circuit and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Olympic Circuit vs. Dareway Software Co | Olympic Circuit vs. Dhc Software Co | Olympic Circuit vs. Jiangsu Hoperun Software | Olympic Circuit vs. Gansu Huangtai Wine marketing |
| China Petroleum vs. Tongxing Environmental Protection | China Petroleum vs. Linewell Software Co | China Petroleum vs. Montage Technology Co | China Petroleum vs. Linktel Technologies Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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