Correlation Between Chongqing Changan and Orinko Advanced
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By analyzing existing cross correlation between Chongqing Changan Automobile and Orinko Advanced Plastics, you can compare the effects of market volatilities on Chongqing Changan and Orinko Advanced 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 Chongqing Changan with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Orinko Advanced.
Diversification Opportunities for Chongqing Changan and Orinko Advanced
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chongqing and Orinko is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Orinko Advanced Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orinko Advanced Plastics and Chongqing Changan 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 Chongqing Changan Automobile are associated (or correlated) with Orinko Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orinko Advanced Plastics has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Orinko Advanced go up and down completely randomly.
Pair Corralation between Chongqing Changan and Orinko Advanced
Assuming the 90 days trading horizon Chongqing Changan is expected to generate 2.3 times less return on investment than Orinko Advanced. But when comparing it to its historical volatility, Chongqing Changan Automobile is 1.0 times less risky than Orinko Advanced. It trades about 0.01 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Orinko Advanced Plastics on October 28, 2024 and sell it today you would earn a total of 110.00 from holding Orinko Advanced Plastics or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Chongqing Changan |
| Orinko Advanced Plastics |
Chongqing Changan and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Orinko Advanced
The main advantage of trading using opposite Chongqing Changan and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Orinko Advanced 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 Orinko Advanced will offset losses from the drop in Orinko Advanced's long position.| Chongqing Changan vs. Guangzhou KDT Machinery | Chongqing Changan vs. Pengxin International Mining | Chongqing Changan vs. Shenyang Huitian Thermal | Chongqing Changan vs. Ningbo Jintian Copper |
| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Shandong Gold Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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