Correlation Between Olympic Circuit and Xiamen Bank
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By analyzing existing cross correlation between Olympic Circuit Technology and Xiamen Bank Co, you can compare the effects of market volatilities on Olympic Circuit and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Xiamen Bank.
Diversification Opportunities for Olympic Circuit and Xiamen Bank
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olympic and Xiamen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Xiamen Bank go up and down completely randomly.
Pair Corralation between Olympic Circuit and Xiamen Bank
Assuming the 90 days trading horizon Olympic Circuit is expected to generate 2.39 times less return on investment than Xiamen Bank. In addition to that, Olympic Circuit is 2.31 times more volatile than Xiamen Bank Co. It trades about 0.01 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.08 per unit of volatility. If you would invest 518.00 in Xiamen Bank Co on November 6, 2024 and sell it today you would earn a total of 37.00 from holding Xiamen Bank Co or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. Xiamen Bank Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| Xiamen Bank |
Olympic Circuit and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Xiamen Bank
The main advantage of trading using opposite Olympic Circuit and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank'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 |
| Xiamen Bank vs. Guangzhou Restaurants Group | Xiamen Bank vs. Jinsanjiang Silicon Material | Xiamen Bank vs. GRG Banking Equipment | Xiamen Bank vs. Lianhe Chemical Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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