Correlation Between Orinko Advanced and Kangping Technology
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By analyzing existing cross correlation between Orinko Advanced Plastics and Kangping Technology Co, you can compare the effects of market volatilities on Orinko Advanced and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Kangping Technology.
Diversification Opportunities for Orinko Advanced and Kangping Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Orinko and Kangping is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Kangping Technology go up and down completely randomly.
Pair Corralation between Orinko Advanced and Kangping Technology
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.1 times more return on investment than Kangping Technology. However, Orinko Advanced is 1.1 times more volatile than Kangping Technology Co. It trades about 0.01 of its potential returns per unit of risk. Kangping Technology Co is currently generating about -0.14 per unit of risk. If you would invest 1,102 in Orinko Advanced Plastics on October 17, 2024 and sell it today you would lose (5.00) from holding Orinko Advanced Plastics or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Kangping Technology Co
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Kangping Technology |
Orinko Advanced and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Kangping Technology
The main advantage of trading using opposite Orinko Advanced and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology'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 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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