Correlation Between Olympic Circuit and Hainan HNA
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By analyzing existing cross correlation between Olympic Circuit Technology and Hainan HNA Infrastructure, you can compare the effects of market volatilities on Olympic Circuit and Hainan HNA 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 Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Hainan HNA.
Diversification Opportunities for Olympic Circuit and Hainan HNA
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Olympic and Hainan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure 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 Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Hainan HNA go up and down completely randomly.
Pair Corralation between Olympic Circuit and Hainan HNA
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 1.75 times more return on investment than Hainan HNA. However, Olympic Circuit is 1.75 times more volatile than Hainan HNA Infrastructure. It trades about 0.06 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about -0.02 per unit of risk. If you would invest 1,467 in Olympic Circuit Technology on October 4, 2024 and sell it today you would earn a total of 1,473 from holding Olympic Circuit Technology or generate 100.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Olympic Circuit Technology vs. Hainan HNA Infrastructure
Performance |
Timeline |
Olympic Circuit Tech |
Hainan HNA Infrastructure |
Olympic Circuit and Hainan HNA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Olympic Circuit and Hainan HNA
The main advantage of trading using opposite Olympic Circuit and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.Olympic Circuit vs. Cloud Live Technology | Olympic Circuit vs. Nanjing Putian Telecommunications | Olympic Circuit vs. Tianjin Realty Development | Olympic Circuit vs. Shenzhen Coship Electronics |
Hainan HNA vs. Cambricon Technologies Corp | Hainan HNA vs. SGSG Sciencetechnology Co | Hainan HNA vs. Loongson Technology Corp | Hainan HNA vs. Shenzhen Fortune Trend |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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