Correlation Between Guangdong Shenglu and Orinko Advanced
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Orinko Advanced Plastics, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Orinko Advanced.
Diversification Opportunities for Guangdong Shenglu and Orinko Advanced
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Orinko is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Orinko Advanced go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Orinko Advanced
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Orinko Advanced. In addition to that, Guangdong Shenglu is 1.12 times more volatile than Orinko Advanced Plastics. It trades about -0.03 of its total potential returns per unit of risk. Orinko Advanced Plastics is currently generating about -0.01 per unit of volatility. If you would invest 1,092 in Orinko Advanced Plastics on August 25, 2024 and sell it today you would lose (196.00) from holding Orinko Advanced Plastics or give up 17.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Guangdong Shenglu |
| Orinko Advanced Plastics |
Guangdong Shenglu and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Orinko Advanced
The main advantage of trading using opposite Guangdong Shenglu and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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