Correlation Between Orinko Advanced and Changjiang Jinggong
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By analyzing existing cross correlation between Orinko Advanced Plastics and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Orinko Advanced and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Changjiang Jinggong.
Diversification Opportunities for Orinko Advanced and Changjiang Jinggong
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orinko and Changjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Orinko Advanced and Changjiang Jinggong
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.91 times more return on investment than Changjiang Jinggong. However, Orinko Advanced is 1.91 times more volatile than Changjiang Jinggong Steel. It trades about 0.24 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.25 per unit of risk. If you would invest 677.00 in Orinko Advanced Plastics on September 12, 2024 and sell it today you would earn a total of 546.00 from holding Orinko Advanced Plastics or generate 80.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Changjiang Jinggong Steel |
Orinko Advanced and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Changjiang Jinggong
The main advantage of trading using opposite Orinko Advanced and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Rongsheng Petrochemical Co |
| Changjiang Jinggong vs. Sichuan Fulin Transportation | Changjiang Jinggong vs. Winner Medical Co | Changjiang Jinggong vs. GKHT Medical Technology | Changjiang Jinggong vs. Lander Sports Development |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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