Correlation Between Guangdong Brandmax and Orinko Advanced
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Orinko Advanced Plastics, you can compare the effects of market volatilities on Guangdong Brandmax 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 Brandmax with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Orinko Advanced.
Diversification Opportunities for Guangdong Brandmax and Orinko Advanced
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Orinko is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Brandmax 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 Brandmax Marketing 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 Brandmax i.e., Guangdong Brandmax and Orinko Advanced go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Orinko Advanced
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.82 times more return on investment than Orinko Advanced. However, Guangdong Brandmax is 1.82 times more volatile than Orinko Advanced Plastics. It trades about 0.18 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.06 per unit of risk. If you would invest 845.00 in Guangdong Brandmax Marketing on September 1, 2024 and sell it today you would earn a total of 134.00 from holding Guangdong Brandmax Marketing or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Guangdong Brandmax |
| Orinko Advanced Plastics |
Guangdong Brandmax and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Orinko Advanced
The main advantage of trading using opposite Guangdong Brandmax and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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 Brandmax vs. Ming Yang Smart | Guangdong Brandmax vs. 159681 | Guangdong Brandmax vs. 159005 | Guangdong Brandmax vs. Loctek Ergonomic Technology |
| Orinko Advanced vs. Sinomach General Machinery | Orinko Advanced vs. Xinjiang Communications Construction | Orinko Advanced vs. Jilin Jlu Communication | Orinko Advanced vs. Anhui Huilong Agricultural |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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