Correlation Between Olympic Circuit and Changjiang Jinggong
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By analyzing existing cross correlation between Olympic Circuit Technology and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Olympic Circuit and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Changjiang Jinggong.
Diversification Opportunities for Olympic Circuit and Changjiang Jinggong
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Olympic and Changjiang is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Olympic Circuit and Changjiang Jinggong
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 2.34 times more return on investment than Changjiang Jinggong. However, Olympic Circuit is 2.34 times more volatile than Changjiang Jinggong Steel. It trades about 0.05 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.08 per unit of risk. If you would invest 3,088 in Olympic Circuit Technology on October 30, 2024 and sell it today you would earn a total of 141.00 from holding Olympic Circuit Technology or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Olympic Circuit Tech |
| Changjiang Jinggong Steel |
Olympic Circuit and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Changjiang Jinggong
The main advantage of trading using opposite Olympic Circuit and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Olympic Circuit vs. Beijing Bewinner Communications | Olympic Circuit vs. Thunder Software Technology | Olympic Circuit vs. TianJin 712 Communication | Olympic Circuit vs. Wuhan Yangtze Communication |
| Changjiang Jinggong vs. Anhui Transport Consulting | Changjiang Jinggong vs. Sichuan Fulin Transportation | Changjiang Jinggong vs. Shuhua Sports Co | Changjiang Jinggong vs. Southern PublishingMedia 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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