Correlation Between Olympic Circuit and UE Furniture
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By analyzing existing cross correlation between Olympic Circuit Technology and UE Furniture Co, you can compare the effects of market volatilities on Olympic Circuit and UE Furniture 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 UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and UE Furniture.
Diversification Opportunities for Olympic Circuit and UE Furniture
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Olympic and 603600 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture 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 UE Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UE Furniture has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and UE Furniture go up and down completely randomly.
Pair Corralation between Olympic Circuit and UE Furniture
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.31 times more return on investment than UE Furniture. However, Olympic Circuit is 1.31 times more volatile than UE Furniture Co. It trades about 0.06 of its potential returns per unit of risk. UE Furniture Co is currently generating about 0.03 per unit of risk. If you would invest 1,688 in Olympic Circuit Technology on October 30, 2024 and sell it today you would earn a total of 1,541 from holding Olympic Circuit Technology or generate 91.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympic Circuit Technology vs. UE Furniture Co
Performance |
| Timeline |
| Olympic Circuit Tech |
| UE Furniture |
Olympic Circuit and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Circuit and UE Furniture
The main advantage of trading using opposite Olympic Circuit and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, UE Furniture 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 UE Furniture will offset losses from the drop in UE Furniture's long position.| Olympic Circuit vs. Beijing Bewinner Communications | Olympic Circuit vs. Thunder Software Technology | Olympic Circuit vs. TianJin 712 Communication | Olympic Circuit vs. Wuhan Yangtze Communication |
| UE Furniture vs. Touchstone International Medical | UE Furniture vs. Lotus Health Group | UE Furniture vs. Dezhan HealthCare Co | UE Furniture vs. Healthcare Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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