Correlation Between Contemporary Amperex and Olympic Circuit
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By analyzing existing cross correlation between Contemporary Amperex Technology and Olympic Circuit Technology, you can compare the effects of market volatilities on Contemporary Amperex 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 Contemporary Amperex with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Olympic Circuit.
Diversification Opportunities for Contemporary Amperex and Olympic Circuit
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Olympic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog 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 Contemporary Amperex 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 Contemporary Amperex Technology 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 Contemporary Amperex i.e., Contemporary Amperex and Olympic Circuit go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Olympic Circuit
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.31 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.12 times less risky than Olympic Circuit. It trades about 0.12 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,076 in Olympic Circuit Technology on September 25, 2024 and sell it today you would earn a total of 850.00 from holding Olympic Circuit Technology or generate 40.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. Olympic Circuit Technology
Performance |
Timeline |
Contemporary Amperex |
Olympic Circuit Tech |
Contemporary Amperex and Olympic Circuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and Olympic Circuit
The main advantage of trading using opposite Contemporary Amperex and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex 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.Contemporary Amperex vs. Xizi Clean Energy | Contemporary Amperex vs. Threes Company Media | Contemporary Amperex vs. Tonghua Grape Wine | Contemporary Amperex vs. Sportsoul Co Ltd |
Olympic Circuit vs. China Nonferrous Metal | Olympic Circuit vs. Shenzhen Topway Video | Olympic Circuit vs. Haima Automobile Group | Olympic Circuit vs. Hefei Metalforming Mach |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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