Correlation Between Jiangxi Ganfeng and Orinko Advanced
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Orinko Advanced Plastics, you can compare the effects of market volatilities on Jiangxi Ganfeng 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 Jiangxi Ganfeng with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Orinko Advanced.
Diversification Opportunities for Jiangxi Ganfeng and Orinko Advanced
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Orinko is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng 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 Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Orinko Advanced go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Orinko Advanced
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 2.05 times more return on investment than Orinko Advanced. However, Jiangxi Ganfeng is 2.05 times more volatile than Orinko Advanced Plastics. It trades about 0.17 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.03 per unit of risk. If you would invest 3,426 in Jiangxi Ganfeng Lithium on August 29, 2024 and sell it today you would earn a total of 579.00 from holding Jiangxi Ganfeng Lithium or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Orinko Advanced Plastics |
Jiangxi Ganfeng and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Orinko Advanced
The main advantage of trading using opposite Jiangxi Ganfeng and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng 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.| Jiangxi Ganfeng vs. Northking Information Technology | Jiangxi Ganfeng vs. Guangzhou KingTeller Technology | Jiangxi Ganfeng vs. Linewell Software Co | Jiangxi Ganfeng vs. Tianshui Huatian Technology |
| Orinko Advanced vs. Guangdong Brandmax Marketing | Orinko Advanced vs. Ningxia Younglight Chemicals | Orinko Advanced vs. Saurer Intelligent Technology | Orinko Advanced vs. Shandong Polymer Biochemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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