Correlation Between Orinko Advanced and Shanghai
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By analyzing existing cross correlation between Orinko Advanced Plastics and Shanghai MG Stationery, you can compare the effects of market volatilities on Orinko Advanced and Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Shanghai.
Diversification Opportunities for Orinko Advanced and Shanghai
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orinko and Shanghai is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and Shanghai go up and down completely randomly.
Pair Corralation between Orinko Advanced and Shanghai
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.32 times more return on investment than Shanghai. However, Orinko Advanced is 1.32 times more volatile than Shanghai MG Stationery. It trades about 0.04 of its potential returns per unit of risk. Shanghai MG Stationery is currently generating about -0.01 per unit of risk. If you would invest 1,057 in Orinko Advanced Plastics on September 12, 2024 and sell it today you would earn a total of 193.00 from holding Orinko Advanced Plastics or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Shanghai MG Stationery
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Shanghai MG Stationery |
Orinko Advanced and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Shanghai
The main advantage of trading using opposite Orinko Advanced and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, Shanghai 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 Shanghai will offset losses from the drop in Shanghai's long position.| Orinko Advanced vs. Lingyuan Iron Steel | Orinko Advanced vs. Gansu Jiu Steel | Orinko Advanced vs. Bengang Steel Plates | Orinko Advanced vs. Beijing SPC Environment |
| Shanghai vs. Nanjing Putian Telecommunications | Shanghai vs. Orinko Advanced Plastics | Shanghai vs. King Strong New Material | Shanghai vs. Guangxi Wuzhou Communications |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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