Correlation Between Guangdong Jingyi and Olympic Circuit
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Olympic Circuit Technology, you can compare the effects of market volatilities on Guangdong Jingyi and Olympic Circuit 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 Guangdong Jingyi with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Olympic Circuit.
Diversification Opportunities for Guangdong Jingyi and Olympic Circuit
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Olympic is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Olympic Circuit Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympic Circuit Tech and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Olympic Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympic Circuit Tech has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Olympic Circuit go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Olympic Circuit
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 20.26 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.15 times less risky than Olympic Circuit. It trades about 0.0 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,507 in Olympic Circuit Technology on October 10, 2024 and sell it today you would earn a total of 1,424 from holding Olympic Circuit Technology or generate 94.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Olympic Circuit Technology
Performance |
Timeline |
Guangdong Jingyi Metal |
Olympic Circuit Tech |
Guangdong Jingyi and Olympic Circuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Olympic Circuit
The main advantage of trading using opposite Guangdong Jingyi and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Olympic Circuit 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 Olympic Circuit will offset losses from the drop in Olympic Circuit's long position.Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
Olympic Circuit vs. Rising Nonferrous Metals | Olympic Circuit vs. Metallurgical of | Olympic Circuit vs. Citic Guoan Wine | Olympic Circuit vs. Guangdong Jingyi Metal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Managers Screen money managers from public funds and ETFs managed around the world |