Correlation Between Olympic Circuit and Jiangxi Hengda
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By analyzing existing cross correlation between Olympic Circuit Technology and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Olympic Circuit and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Jiangxi Hengda.
Diversification Opportunities for Olympic Circuit and Jiangxi Hengda
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Olympic and Jiangxi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Olympic Circuit and Jiangxi Hengda
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to under-perform the Jiangxi Hengda. But the stock apears to be less risky and, when comparing its historical volatility, Olympic Circuit Technology is 1.12 times less risky than Jiangxi Hengda. The stock trades about -0.05 of its potential returns per unit of risk. The Jiangxi Hengda Hi Tech is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 555.00 in Jiangxi Hengda Hi Tech on September 25, 2024 and sell it today you would lose (19.00) from holding Jiangxi Hengda Hi Tech or give up 3.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Olympic Circuit Technology vs. Jiangxi Hengda Hi Tech
Performance |
Timeline |
Olympic Circuit Tech |
Jiangxi Hengda Hi |
Olympic Circuit and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Olympic Circuit and Jiangxi Hengda
The main advantage of trading using opposite Olympic Circuit and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.Olympic Circuit vs. China Nonferrous Metal | Olympic Circuit vs. Shenzhen Topway Video | Olympic Circuit vs. Haima Automobile Group | Olympic Circuit vs. Hefei Metalforming Mach |
Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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