Correlation Between Shanghai Ziyan and Orinko Advanced
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Orinko Advanced Plastics, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Orinko Advanced.
Diversification Opportunities for Shanghai Ziyan and Orinko Advanced
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Orinko is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods 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 Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Orinko Advanced go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Orinko Advanced
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Orinko Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Ziyan Foods is 1.03 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 0.1 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Orinko Advanced Plastics on October 30, 2024 and sell it today you would earn a total of 138.00 from holding Orinko Advanced Plastics or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Orinko Advanced Plastics |
Shanghai Ziyan and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Orinko Advanced
The main advantage of trading using opposite Shanghai Ziyan and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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