Correlation Between Olympic Circuit and Xinjiang Tianrun
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By analyzing existing cross correlation between Olympic Circuit Technology and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Olympic Circuit and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Xinjiang Tianrun.
Diversification Opportunities for Olympic Circuit and Xinjiang Tianrun
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Olympic and Xinjiang is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Olympic Circuit and Xinjiang Tianrun
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.19 times more return on investment than Xinjiang Tianrun. However, Olympic Circuit is 1.19 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.15 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Olympic Circuit Tech |
| Xinjiang Tianrun Dairy |
Olympic Circuit and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Xinjiang Tianrun
The main advantage of trading using opposite Olympic Circuit and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Olympic Circuit vs. Runjian Communication Co | Olympic Circuit vs. Xiangyang Automobile Bearing | Olympic Circuit vs. Dongfeng Automobile Co | Olympic Circuit vs. Shenwu Energy Saving |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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