Correlation Between Olympic Circuit and China Telecom
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By analyzing existing cross correlation between Olympic Circuit Technology and China Telecom Corp, you can compare the effects of market volatilities on Olympic Circuit and China Telecom 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 China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and China Telecom.
Diversification Opportunities for Olympic Circuit and China Telecom
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Olympic and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and China Telecom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Telecom Corp 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 China Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Telecom Corp has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and China Telecom go up and down completely randomly.
Pair Corralation between Olympic Circuit and China Telecom
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to under-perform the China Telecom. In addition to that, Olympic Circuit is 2.13 times more volatile than China Telecom Corp. It trades about -0.03 of its total potential returns per unit of risk. China Telecom Corp is currently generating about 0.08 per unit of volatility. If you would invest 652.00 in China Telecom Corp on September 12, 2024 and sell it today you would earn a total of 20.00 from holding China Telecom Corp or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. China Telecom Corp
Performance |
| Timeline |
| Olympic Circuit Tech |
| China Telecom Corp |
Olympic Circuit and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and China Telecom
The main advantage of trading using opposite Olympic Circuit and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, China Telecom 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 China Telecom will offset losses from the drop in China Telecom's long position.| Olympic Circuit vs. Air China Ltd | Olympic Circuit vs. Jonjee Hi tech Industrial | Olympic Circuit vs. Dymatic Chemicals | Olympic Circuit vs. Eastern Communications Co |
| China Telecom vs. Guangdong Brandmax Marketing | China Telecom vs. Olympic Circuit Technology | China Telecom vs. Industrial Bank Co | China Telecom vs. China World Trade |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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