Correlation Between Orinko Advanced and Xingguang Agricultural
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By analyzing existing cross correlation between Orinko Advanced Plastics and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Orinko Advanced and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Xingguang Agricultural.
Diversification Opportunities for Orinko Advanced and Xingguang Agricultural
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orinko and Xingguang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Orinko Advanced and Xingguang Agricultural
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 0.86 times more return on investment than Xingguang Agricultural. However, Orinko Advanced Plastics is 1.16 times less risky than Xingguang Agricultural. It trades about 0.06 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.02 per unit of risk. If you would invest 913.00 in Orinko Advanced Plastics on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Orinko Advanced Plastics or generate 2.52% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Xingguang Agricultural |
Orinko Advanced and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Xingguang Agricultural
The main advantage of trading using opposite Orinko Advanced and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Orinko Advanced vs. Sinomach General Machinery | Orinko Advanced vs. Xinjiang Communications Construction | Orinko Advanced vs. Jilin Jlu Communication | Orinko Advanced vs. Anhui Huilong Agricultural |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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