Correlation Between Kuang Chi and Olympic Circuit
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By analyzing existing cross correlation between Kuang Chi Technologies and Olympic Circuit Technology, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Olympic Circuit.
Diversification Opportunities for Kuang Chi and Olympic Circuit
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Olympic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies 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 Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Olympic Circuit go up and down completely randomly.
Pair Corralation between Kuang Chi and Olympic Circuit
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.7 times more return on investment than Olympic Circuit. However, Kuang Chi Technologies is 1.42 times less risky than Olympic Circuit. It trades about 0.2 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about -0.05 per unit of risk. If you would invest 4,005 in Kuang Chi Technologies on September 25, 2024 and sell it today you would earn a total of 407.00 from holding Kuang Chi Technologies or generate 10.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Olympic Circuit Technology
Performance |
Timeline |
Kuang Chi Technologies |
Olympic Circuit Tech |
Kuang Chi and Olympic Circuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Olympic Circuit
The main advantage of trading using opposite Kuang Chi and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Lotus Health Group | Kuang Chi vs. Dezhan HealthCare Co | Kuang Chi vs. By health |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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