Correlation Between Orinko Advanced and China Petroleum
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By analyzing existing cross correlation between Orinko Advanced Plastics and China Petroleum Chemical, you can compare the effects of market volatilities on Orinko Advanced and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and China Petroleum.
Diversification Opportunities for Orinko Advanced and China Petroleum
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orinko and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and China Petroleum go up and down completely randomly.
Pair Corralation between Orinko Advanced and China Petroleum
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 2.46 times more return on investment than China Petroleum. However, Orinko Advanced is 2.46 times more volatile than China Petroleum Chemical. It trades about 0.23 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.44 per unit of risk. If you would invest 981.00 in Orinko Advanced Plastics on November 6, 2024 and sell it today you would earn a total of 93.00 from holding Orinko Advanced Plastics or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. China Petroleum Chemical
Performance |
| Timeline |
| Orinko Advanced Plastics |
| China Petroleum Chemical |
Orinko Advanced and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and China Petroleum
The main advantage of trading using opposite Orinko Advanced and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Orinko Advanced vs. Shandong Hongchuang Aluminum | Orinko Advanced vs. Elite Color Environmental | Orinko Advanced vs. Grandblue Environment Co | Orinko Advanced vs. Jiaozuo Wanfang Aluminum |
| China Petroleum vs. Chongqing Shunbo Aluminum | China Petroleum vs. Aluminum Corp of | China Petroleum vs. Vohringer Home Technology | China Petroleum vs. Hefei Metalforming Mach |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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