Correlation Between Ningxia Younglight and Orinko Advanced
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Orinko Advanced Plastics, you can compare the effects of market volatilities on Ningxia Younglight 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 Ningxia Younglight with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Orinko Advanced.
Diversification Opportunities for Ningxia Younglight and Orinko Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Orinko is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals 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 Ningxia Younglight 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 Ningxia Younglight Chemicals 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 Ningxia Younglight i.e., Ningxia Younglight and Orinko Advanced go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Orinko Advanced
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Orinko Advanced. In addition to that, Ningxia Younglight is 1.74 times more volatile than Orinko Advanced Plastics. It trades about -0.02 of its total potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.06 per unit of volatility. If you would invest 913.00 in Orinko Advanced Plastics on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Orinko Advanced Plastics or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Ningxia Younglight |
| Orinko Advanced Plastics |
Ningxia Younglight and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Orinko Advanced
The main advantage of trading using opposite Ningxia Younglight and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight 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.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Orinko Advanced vs. Sinomach General Machinery | Orinko Advanced vs. Xinjiang Communications Construction | Orinko Advanced vs. Jilin Jlu Communication | Orinko Advanced vs. Anhui Huilong Agricultural |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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