Correlation Between Zhejiang Juhua and Orinko Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Juhua Co and Orinko Advanced Plastics, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Orinko Advanced.
Diversification Opportunities for Zhejiang Juhua and Orinko Advanced
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Orinko is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co 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 Zhejiang Juhua 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 Zhejiang Juhua Co 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 Zhejiang Juhua i.e., Zhejiang Juhua and Orinko Advanced go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Orinko Advanced
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.04 times more return on investment than Orinko Advanced. However, Zhejiang Juhua is 1.04 times more volatile than Orinko Advanced Plastics. It trades about 0.14 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 2,092 in Zhejiang Juhua Co on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Zhejiang Juhua Co or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Zhejiang Juhua |
| Orinko Advanced Plastics |
Zhejiang Juhua and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Orinko Advanced
The main advantage of trading using opposite Zhejiang Juhua and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. BTG Hotels Group | Zhejiang Juhua vs. Shenzhen Centralcon Investment | Zhejiang Juhua vs. Harbin Hatou Investment |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |