Correlation Between Orinko Advanced and China Resources
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By analyzing existing cross correlation between Orinko Advanced Plastics and China Resources Microelectronics, you can compare the effects of market volatilities on Orinko Advanced and China Resources 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 Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and China Resources.
Diversification Opportunities for Orinko Advanced and China Resources
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Orinko and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and China Resources Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Micr 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 Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Micr has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and China Resources go up and down completely randomly.
Pair Corralation between Orinko Advanced and China Resources
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.19 times more return on investment than China Resources. However, Orinko Advanced is 1.19 times more volatile than China Resources Microelectronics. It trades about 0.04 of its potential returns per unit of risk. China Resources Microelectronics is currently generating about 0.0 per unit of risk. If you would invest 817.00 in Orinko Advanced Plastics on September 12, 2024 and sell it today you would earn a total of 406.00 from holding Orinko Advanced Plastics or generate 49.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. China Resources Microelectroni
Performance |
| Timeline |
| Orinko Advanced Plastics |
| China Resources Micr |
Orinko Advanced and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and China Resources
The main advantage of trading using opposite Orinko Advanced and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, China Resources 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 Resources will offset losses from the drop in China Resources' 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 |
| China Resources vs. Gansu Jiu Steel | China Resources vs. Shandong Mining Machinery | China Resources vs. Aba Chemicals Corp | China Resources vs. BlueFocus Communication Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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