Correlation Between Olympic Circuit and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Olympic Circuit Technology and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Olympic Circuit and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and HUAQIN TECHNOLOGY.
Diversification Opportunities for Olympic Circuit and HUAQIN TECHNOLOGY
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Olympic and HUAQIN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Olympic Circuit and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Olympic Circuit is expected to generate 1.02 times less return on investment than HUAQIN TECHNOLOGY. But when comparing it to its historical volatility, Olympic Circuit Technology is 1.21 times less risky than HUAQIN TECHNOLOGY. It trades about 0.25 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 6,340 in HUAQIN TECHNOLOGY LTD on October 23, 2024 and sell it today you would earn a total of 1,215 from holding HUAQIN TECHNOLOGY LTD or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Olympic Circuit Technology vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Olympic Circuit Tech |
| HUAQIN TECHNOLOGY LTD |
Olympic Circuit and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Olympic Circuit and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Olympic Circuit vs. Changchun UP Optotech | Olympic Circuit vs. HeNan Splendor Science | Olympic Circuit vs. Jiangsu Financial Leasing | Olympic Circuit vs. Digiwin Software Co |
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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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