Correlation Between Xinjiang Baodi and Orinko Advanced
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Orinko Advanced Plastics, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Orinko Advanced.
Diversification Opportunities for Xinjiang Baodi and Orinko Advanced
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinjiang and Orinko is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi 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 Xinjiang Baodi 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 Xinjiang Baodi 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 Xinjiang Baodi i.e., Xinjiang Baodi and Orinko Advanced go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Orinko Advanced
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 15.38 times less return on investment than Orinko Advanced. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.56 times less risky than Orinko Advanced. It trades about 0.01 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 838.00 in Orinko Advanced Plastics on November 28, 2024 and sell it today you would earn a total of 635.00 from holding Orinko Advanced Plastics or generate 75.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Orinko Advanced Plastics |
Xinjiang Baodi and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Orinko Advanced
The main advantage of trading using opposite Xinjiang Baodi and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Sihui Fuji Electronics | Xinjiang Baodi vs. Ningbo Kangqiang Electronics | Xinjiang Baodi vs. Guangdong Ellington Electronics | Xinjiang Baodi vs. Jiangxi Lianchuang Opto electronic |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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