Correlation Between Beijing SPC and Orinko Advanced
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By analyzing existing cross correlation between Beijing SPC Environment and Orinko Advanced Plastics, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Orinko Advanced.
Diversification Opportunities for Beijing SPC and Orinko Advanced
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Orinko is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment 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 Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Orinko Advanced go up and down completely randomly.
Pair Corralation between Beijing SPC and Orinko Advanced
Assuming the 90 days trading horizon Beijing SPC is expected to generate 2.0 times less return on investment than Orinko Advanced. But when comparing it to its historical volatility, Beijing SPC Environment is 1.57 times less risky than Orinko Advanced. It trades about 0.22 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 677.00 in Orinko Advanced Plastics on September 12, 2024 and sell it today you would earn a total of 573.00 from holding Orinko Advanced Plastics or generate 84.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Beijing SPC Environment |
| Orinko Advanced Plastics |
Beijing SPC and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Orinko Advanced
The main advantage of trading using opposite Beijing SPC and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Kweichow Moutai Co | Beijing SPC vs. Contemporary Amperex Technology | Beijing SPC vs. G bits Network Technology | Beijing SPC vs. BYD Co Ltd |
| Orinko Advanced vs. Lingyuan Iron Steel | Orinko Advanced vs. Gansu Jiu Steel | Orinko Advanced vs. Bengang Steel Plates | Orinko Advanced vs. Beijing SPC Environment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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