Correlation Between Penyao Environmental and Orinko Advanced
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By analyzing existing cross correlation between Penyao Environmental Protection and Orinko Advanced Plastics, you can compare the effects of market volatilities on Penyao Environmental 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 Penyao Environmental with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Orinko Advanced.
Diversification Opportunities for Penyao Environmental and Orinko Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Penyao and Orinko is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio 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 Penyao Environmental 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 Penyao Environmental Protection 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 Penyao Environmental i.e., Penyao Environmental and Orinko Advanced go up and down completely randomly.
Pair Corralation between Penyao Environmental and Orinko Advanced
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 2.07 times more return on investment than Orinko Advanced. However, Penyao Environmental is 2.07 times more volatile than Orinko Advanced Plastics. It trades about 0.24 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.2 per unit of risk. If you would invest 495.00 in Penyao Environmental Protection on September 4, 2024 and sell it today you would earn a total of 136.00 from holding Penyao Environmental Protection or generate 27.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Penyao Environmental |
| Orinko Advanced Plastics |
Penyao Environmental and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Orinko Advanced
The main advantage of trading using opposite Penyao Environmental and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental 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.| Penyao Environmental vs. Industrial and Commercial | Penyao Environmental vs. Agricultural Bank of | Penyao Environmental vs. China Construction Bank | Penyao Environmental vs. Bank of China |
| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Shandong Gold Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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