Correlation Between Olympic Circuit and Dow Jones
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By analyzing existing cross correlation between Olympic Circuit Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Olympic Circuit and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Circuit and Dow Jones.
Diversification Opportunities for Olympic Circuit and Dow Jones
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Olympic and Dow is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Circuit Technology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Olympic Circuit i.e., Olympic Circuit and Dow Jones go up and down completely randomly.
Pair Corralation between Olympic Circuit and Dow Jones
Assuming the 90 days trading horizon Olympic Circuit Technology is expected to generate 6.11 times more return on investment than Dow Jones. However, Olympic Circuit is 6.11 times more volatile than Dow Jones Industrial. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.05 per unit of risk. 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 | Significant |
Accuracy | 93.65% |
Values | Daily Returns |
Olympic Circuit Technology vs. Dow Jones Industrial
Performance |
Timeline |
Olympic Circuit and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Olympic Circuit Technology
Pair trading matchups for Olympic Circuit
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Olympic Circuit and Dow Jones
The main advantage of trading using opposite Olympic Circuit and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Circuit position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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