Correlation Between Orinko Advanced and Citic Guoan
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By analyzing existing cross correlation between Orinko Advanced Plastics and Citic Guoan Wine, you can compare the effects of market volatilities on Orinko Advanced and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Citic Guoan.
Diversification Opportunities for Orinko Advanced and Citic Guoan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orinko and Citic is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Citic Guoan go up and down completely randomly.
Pair Corralation between Orinko Advanced and Citic Guoan
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.71 times more return on investment than Citic Guoan. However, Orinko Advanced is 1.71 times more volatile than Citic Guoan Wine. It trades about -0.03 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.35 per unit of risk. If you would invest 1,068 in Orinko Advanced Plastics on October 10, 2024 and sell it today you would lose (51.00) from holding Orinko Advanced Plastics or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Citic Guoan Wine
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Citic Guoan Wine |
Orinko Advanced and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Citic Guoan
The main advantage of trading using opposite Orinko Advanced and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan'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 |
| Citic Guoan vs. Jointo Energy Investment | Citic Guoan vs. Zhejiang Construction Investment | Citic Guoan vs. Zoje Resources Investment | Citic Guoan vs. Zhongrun Resources Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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