Correlation Between Orinko Advanced and Guangdong Xiongsu
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By analyzing existing cross correlation between Orinko Advanced Plastics and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Orinko Advanced and Guangdong Xiongsu 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 Orinko Advanced with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Guangdong Xiongsu.
Diversification Opportunities for Orinko Advanced and Guangdong Xiongsu
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Orinko and Guangdong is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and Orinko Advanced 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 Orinko Advanced Plastics are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Orinko Advanced and Guangdong Xiongsu
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 0.8 times more return on investment than Guangdong Xiongsu. However, Orinko Advanced Plastics is 1.25 times less risky than Guangdong Xiongsu. It trades about 0.02 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.01 per unit of risk. If you would invest 931.00 in Orinko Advanced Plastics on October 11, 2024 and sell it today you would earn a total of 93.00 from holding Orinko Advanced Plastics or generate 9.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Orinko Advanced Plastics vs. Guangdong Xiongsu Technology
Performance |
Timeline |
Orinko Advanced Plastics |
Guangdong Xiongsu |
Orinko Advanced and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Orinko Advanced and Guangdong Xiongsu
The main advantage of trading using opposite Orinko Advanced and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Shandong Gold Mining |
Guangdong Xiongsu vs. Orinko Advanced Plastics | Guangdong Xiongsu vs. Chongqing Changan Automobile | Guangdong Xiongsu vs. Ningbo Fangzheng Automobile | Guangdong Xiongsu vs. GRIPM Advanced 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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