Correlation Between Olympic Circuit and Jinhui Liquor
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By analyzing existing cross correlation between Olympic Circuit Technology and Jinhui Liquor Co, you can compare the effects of market volatilities on Olympic Circuit and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Jinhui Liquor.
Diversification Opportunities for Olympic Circuit and Jinhui Liquor
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Olympic and Jinhui is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Olympic Circuit and Jinhui Liquor
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.47 times more return on investment than Jinhui Liquor. However, Olympic Circuit is 1.47 times more volatile than Jinhui Liquor Co. It trades about 0.06 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 1,708 in Olympic Circuit Technology on November 2, 2024 and sell it today you would earn a total of 1,521 from holding Olympic Circuit Technology or generate 89.05% 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. Jinhui Liquor Co
Performance |
Timeline |
Olympic Circuit Tech |
Jinhui Liquor |
Olympic Circuit and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Olympic Circuit and Jinhui Liquor
The main advantage of trading using opposite Olympic Circuit and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.Olympic Circuit vs. Dareway Software Co | Olympic Circuit vs. Dhc Software Co | Olympic Circuit vs. Jiangsu Hoperun Software | Olympic Circuit vs. Gansu Huangtai Wine marketing |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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