Correlation Between Olympic Circuit and Kuang Chi
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By analyzing existing cross correlation between Olympic Circuit Technology and Kuang Chi Technologies, you can compare the effects of market volatilities on Olympic Circuit and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Kuang Chi.
Diversification Opportunities for Olympic Circuit and Kuang Chi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Olympic and Kuang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Kuang Chi go up and down completely randomly.
Pair Corralation between Olympic Circuit and Kuang Chi
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to under-perform the Kuang Chi. In addition to that, Olympic Circuit is 1.42 times more volatile than Kuang Chi Technologies. It trades about -0.05 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.2 per unit of volatility. 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 |
Olympic Circuit Technology vs. Kuang Chi Technologies
Performance |
Timeline |
Olympic Circuit Tech |
Kuang Chi Technologies |
Olympic Circuit and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Olympic Circuit and Kuang Chi
The main advantage of trading using opposite Olympic Circuit and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi'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 |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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