Correlation Between Tianshui Huatian and Orinko Advanced
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By analyzing existing cross correlation between Tianshui Huatian Technology and Orinko Advanced Plastics, you can compare the effects of market volatilities on Tianshui Huatian 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 Tianshui Huatian with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Orinko Advanced.
Diversification Opportunities for Tianshui Huatian and Orinko Advanced
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianshui and Orinko is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology 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 Tianshui Huatian 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 Tianshui Huatian Technology 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 Tianshui Huatian i.e., Tianshui Huatian and Orinko Advanced go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Orinko Advanced
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to under-perform the Orinko Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Tianshui Huatian Technology is 1.18 times less risky than Orinko Advanced. The stock trades about -0.16 of its potential returns per unit of risk. The Orinko Advanced Plastics is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,102 in Orinko Advanced Plastics on October 16, 2024 and sell it today you would lose (72.00) from holding Orinko Advanced Plastics or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Orinko Advanced Plastics |
Tianshui Huatian and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Orinko Advanced
The main advantage of trading using opposite Tianshui Huatian and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian 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.| Tianshui Huatian vs. Guangdong Qunxing Toys | Tianshui Huatian vs. Beijing Jiaman Dress | Tianshui Huatian vs. Dongjiang Environmental Co | Tianshui Huatian vs. Spring Airlines Co |
| Orinko Advanced vs. Anji Foodstuff Co | Orinko Advanced vs. Shanghai Ziyan Foods | Orinko Advanced vs. GigaDevice SemiconductorBeiji | Orinko Advanced vs. Ingenic Semiconductor |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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