Correlation Between FSPG Hi and Orinko Advanced
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By analyzing existing cross correlation between FSPG Hi Tech Co and Orinko Advanced Plastics, you can compare the effects of market volatilities on FSPG Hi 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 FSPG Hi with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Orinko Advanced.
Diversification Opportunities for FSPG Hi and Orinko Advanced
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSPG and Orinko is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co 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 FSPG Hi 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 FSPG Hi Tech Co 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 FSPG Hi i.e., FSPG Hi and Orinko Advanced go up and down completely randomly.
Pair Corralation between FSPG Hi and Orinko Advanced
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 0.97 times more return on investment than Orinko Advanced. However, FSPG Hi Tech Co is 1.03 times less risky than Orinko Advanced. It trades about 0.12 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about -0.01 per unit of risk. If you would invest 476.00 in FSPG Hi Tech Co on August 25, 2024 and sell it today you would earn a total of 535.00 from holding FSPG Hi Tech Co or generate 112.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Orinko Advanced Plastics
Performance |
| Timeline |
| FSPG Hi Tech |
| Orinko Advanced Plastics |
FSPG Hi and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Orinko Advanced
The main advantage of trading using opposite FSPG Hi and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi 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.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
| Orinko Advanced vs. Jiangxi Hengda Hi Tech | Orinko Advanced vs. FSPG Hi Tech Co | Orinko Advanced vs. Guangdong Shenglu Telecommunication | Orinko Advanced vs. Jonjee Hi tech Industrial |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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