Correlation Between Olympic Circuit and Kingclean Electric
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By analyzing existing cross correlation between Olympic Circuit Technology and Kingclean Electric Co, you can compare the effects of market volatilities on Olympic Circuit and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Kingclean Electric.
Diversification Opportunities for Olympic Circuit and Kingclean Electric
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Olympic and Kingclean is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Kingclean Electric go up and down completely randomly.
Pair Corralation between Olympic Circuit and Kingclean Electric
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 3.06 times more return on investment than Kingclean Electric. However, Olympic Circuit is 3.06 times more volatile than Kingclean Electric Co. It trades about 0.19 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.13 per unit of risk. If you would invest 2,766 in Olympic Circuit Technology on September 4, 2024 and sell it today you would earn a total of 536.00 from holding Olympic Circuit Technology or generate 19.38% 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. Kingclean Electric Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| Kingclean Electric |
Olympic Circuit and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and Kingclean Electric
The main advantage of trading using opposite Olympic Circuit and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Olympic Circuit vs. Kingclean Electric Co | Olympic Circuit vs. CSSC Offshore Marine | Olympic Circuit vs. Huaibei Mining Holdings | Olympic Circuit vs. Chengtun Mining Group |
| Kingclean Electric vs. BeiGene | Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. Beijing Roborock Technology | Kingclean Electric vs. G bits Network 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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