Correlation Between Suzhou Xingye and Olympic Circuit
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By analyzing existing cross correlation between Suzhou Xingye Material and Olympic Circuit Technology, you can compare the effects of market volatilities on Suzhou Xingye 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 Suzhou Xingye with a short position of Olympic Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Olympic Circuit.
Diversification Opportunities for Suzhou Xingye and Olympic Circuit
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Olympic is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material 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 Suzhou Xingye 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 Suzhou Xingye Material 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 Suzhou Xingye i.e., Suzhou Xingye and Olympic Circuit go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Olympic Circuit
Assuming the 90 days trading horizon Suzhou Xingye is expected to generate 1.74 times less return on investment than Olympic Circuit. But when comparing it to its historical volatility, Suzhou Xingye Material is 1.6 times less risky than Olympic Circuit. It trades about 0.15 of its potential returns per unit of risk. Olympic Circuit Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,126 in Olympic Circuit Technology on September 24, 2024 and sell it today you would earn a total of 1,056 from holding Olympic Circuit Technology or generate 49.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Xingye Material vs. Olympic Circuit Technology
Performance |
Timeline |
Suzhou Xingye Material |
Olympic Circuit Tech |
Suzhou Xingye and Olympic Circuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Xingye and Olympic Circuit
The main advantage of trading using opposite Suzhou Xingye and Olympic Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye 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.Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
Olympic Circuit vs. Suzhou Xingye Material | Olympic Circuit vs. GRIPM Advanced Materials | Olympic Circuit vs. Chengdu Spaceon Electronics | Olympic Circuit vs. Guangzhou Tinci Materials |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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