Correlation Between China Securities and Orinko Advanced
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By analyzing existing cross correlation between China Securities 800 and Orinko Advanced Plastics, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Orinko Advanced.
Diversification Opportunities for China Securities and Orinko Advanced
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Orinko is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Orinko Advanced go up and down completely randomly.
Pair Corralation between China Securities and Orinko Advanced
Assuming the 90 days trading horizon China Securities is expected to generate 13.94 times less return on investment than Orinko Advanced. But when comparing it to its historical volatility, China Securities 800 is 2.15 times less risky than Orinko Advanced. It trades about 0.0 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 883.00 in Orinko Advanced Plastics on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Orinko Advanced Plastics or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Orinko Advanced Plastics
Performance |
| Timeline |
China Securities and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Orinko Advanced Plastics
Pair trading matchups for Orinko Advanced
Pair Trading with China Securities and Orinko Advanced
The main advantage of trading using opposite China Securities and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Rongsheng Petrochemical Co | Orinko Advanced vs. Hoshine Silicon Ind |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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