Correlation Between Shandong Gold and Orinko Advanced
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By analyzing existing cross correlation between Shandong Gold Mining and Orinko Advanced Plastics, you can compare the effects of market volatilities on Shandong Gold 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 Shandong Gold with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Orinko Advanced.
Diversification Opportunities for Shandong Gold and Orinko Advanced
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Orinko is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining 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 Shandong Gold 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 Shandong Gold Mining 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 Shandong Gold i.e., Shandong Gold and Orinko Advanced go up and down completely randomly.
Pair Corralation between Shandong Gold and Orinko Advanced
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Orinko Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.99 times less risky than Orinko Advanced. The stock trades about -0.37 of its potential returns per unit of risk. The Orinko Advanced Plastics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Orinko Advanced Plastics on August 25, 2024 and sell it today you would earn a total of 35.00 from holding Orinko Advanced Plastics or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Shandong Gold Mining |
| Orinko Advanced Plastics |
Shandong Gold and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Orinko Advanced
The main advantage of trading using opposite Shandong Gold and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold 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.| Shandong Gold vs. Xian International Medical | Shandong Gold vs. Lutian Machinery Co | Shandong Gold vs. Shaanxi Construction Machinery | Shandong Gold vs. Ningbo Construction Co |
| Orinko Advanced vs. Jiangxi Hengda Hi Tech | Orinko Advanced vs. FSPG Hi Tech Co | Orinko Advanced vs. Guangdong Shenglu Telecommunication | Orinko Advanced vs. Jonjee Hi tech Industrial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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