Correlation Between Olympic Circuit and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Olympic Circuit Technology and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Olympic Circuit and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Hubei Xingfa.
Diversification Opportunities for Olympic Circuit and Hubei Xingfa
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Olympic and Hubei is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Olympic Circuit and Hubei Xingfa
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 2.16 times more return on investment than Hubei Xingfa. However, Olympic Circuit is 2.16 times more volatile than Hubei Xingfa Chemicals. It trades about 0.19 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.04 per unit of risk. If you would invest 2,882 in Olympic Circuit Technology on November 6, 2024 and sell it today you would earn a total of 347.00 from holding Olympic Circuit Technology or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Olympic Circuit Tech |
| Hubei Xingfa Chemicals |
Olympic Circuit and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Hubei Xingfa
The main advantage of trading using opposite Olympic Circuit and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Olympic Circuit vs. Shandong Polymer Biochemicals | Olympic Circuit vs. Do Fluoride Chemicals Co | Olympic Circuit vs. Yingde Greatchem Chemicals | Olympic Circuit vs. Beijing Yanjing Brewery |
| Hubei Xingfa vs. Glodon Software Co | Hubei Xingfa vs. Easyhome New Retail | Hubei Xingfa vs. Harvest Fund Management | Hubei Xingfa vs. Shijiazhuang Tonhe Electronics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |