Correlation Between Olympic Circuit and Zhejiang Daily
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By analyzing existing cross correlation between Olympic Circuit Technology and Zhejiang Daily Media, you can compare the effects of market volatilities on Olympic Circuit and Zhejiang Daily 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 Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Zhejiang Daily.
Diversification Opportunities for Olympic Circuit and Zhejiang Daily
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Olympic and Zhejiang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media 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 Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Olympic Circuit and Zhejiang Daily
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.46 times more return on investment than Zhejiang Daily. However, Olympic Circuit is 1.46 times more volatile than Zhejiang Daily Media. It trades about 0.09 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about -0.16 per unit of risk. If you would invest 3,049 in Olympic Circuit Technology on October 18, 2024 and sell it today you would earn a total of 193.00 from holding Olympic Circuit Technology or generate 6.33% 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. Zhejiang Daily Media
Performance |
| Timeline |
| Olympic Circuit Tech |
| Zhejiang Daily Media |
Olympic Circuit and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Zhejiang Daily
The main advantage of trading using opposite Olympic Circuit and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Zhejiang Daily 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 Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.| Olympic Circuit vs. New Hope Dairy | Olympic Circuit vs. Eastroc Beverage Group | Olympic Circuit vs. Guilin Seamild Foods | Olympic Circuit vs. Anji Foodstuff Co |
| Zhejiang Daily vs. Hoshine Silicon Ind | Zhejiang Daily vs. Olympic Circuit Technology | Zhejiang Daily vs. Shanghai Action Education | Zhejiang Daily vs. COL Digital Publishing |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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