Correlation Between Jiangsu Financial and Orinko Advanced
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Orinko Advanced Plastics, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Orinko Advanced.
Diversification Opportunities for Jiangsu Financial and Orinko Advanced
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Orinko is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Orinko Advanced go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Orinko Advanced
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Orinko Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 1.46 times less risky than Orinko Advanced. The stock trades about -0.03 of its potential returns per unit of risk. The Orinko Advanced Plastics is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Orinko Advanced Plastics on September 4, 2024 and sell it today you would earn a total of 95.00 from holding Orinko Advanced Plastics or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Orinko Advanced Plastics |
Jiangsu Financial and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Orinko Advanced
The main advantage of trading using opposite Jiangsu Financial and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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