Correlation Between Orinko Advanced and Jiangxi Hengda
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By analyzing existing cross correlation between Orinko Advanced Plastics and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Orinko Advanced and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Jiangxi Hengda.
Diversification Opportunities for Orinko Advanced and Jiangxi Hengda
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orinko and Jiangxi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Orinko Advanced and Jiangxi Hengda
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 0.74 times more return on investment than Jiangxi Hengda. However, Orinko Advanced Plastics is 1.34 times less risky than Jiangxi Hengda. It trades about 0.01 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.0 per unit of risk. If you would invest 935.00 in Orinko Advanced Plastics on August 25, 2024 and sell it today you would lose (39.00) from holding Orinko Advanced Plastics or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Jiangxi Hengda Hi |
Orinko Advanced and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Jiangxi Hengda
The main advantage of trading using opposite Orinko Advanced and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| 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 |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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