Correlation Between Orinko Advanced and LianChuang Electronic
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By analyzing existing cross correlation between Orinko Advanced Plastics and LianChuang Electronic Technology, you can compare the effects of market volatilities on Orinko Advanced and LianChuang Electronic 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 Orinko Advanced with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and LianChuang Electronic.
Diversification Opportunities for Orinko Advanced and LianChuang Electronic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orinko and LianChuang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Orinko Advanced 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 Orinko Advanced Plastics are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Orinko Advanced and LianChuang Electronic
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.41 times more return on investment than LianChuang Electronic. However, Orinko Advanced is 1.41 times more volatile than LianChuang Electronic Technology. It trades about 0.21 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.01 per unit of risk. If you would invest 908.00 in Orinko Advanced Plastics on September 27, 2024 and sell it today you would earn a total of 197.00 from holding Orinko Advanced Plastics or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Orinko Advanced Plastics |
| LianChuang Electronic |
Orinko Advanced and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and LianChuang Electronic
The main advantage of trading using opposite Orinko Advanced and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Shandong Gold Mining |
| LianChuang Electronic vs. GRG Banking Equipment | LianChuang Electronic vs. NBTM New Materials | LianChuang Electronic vs. Jinhui Liquor Co | LianChuang Electronic vs. Orinko Advanced Plastics |
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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