Correlation Between Orinko Advanced and GreenTech Environmental
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By analyzing existing cross correlation between Orinko Advanced Plastics and GreenTech Environmental Co, you can compare the effects of market volatilities on Orinko Advanced and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and GreenTech Environmental.
Diversification Opportunities for Orinko Advanced and GreenTech Environmental
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orinko and GreenTech is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Orinko Advanced i.e., Orinko Advanced and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Orinko Advanced and GreenTech Environmental
Assuming the 90 days trading horizon Orinko Advanced Plastics is expected to generate 1.46 times more return on investment than GreenTech Environmental. However, Orinko Advanced is 1.46 times more volatile than GreenTech Environmental Co. It trades about 0.13 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.12 per unit of risk. If you would invest 1,013 in Orinko Advanced Plastics on November 3, 2024 and sell it today you would earn a total of 61.00 from holding Orinko Advanced Plastics or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. GreenTech Environmental Co
Performance |
| Timeline |
| Orinko Advanced Plastics |
| GreenTech Environmental |
Orinko Advanced and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and GreenTech Environmental
The main advantage of trading using opposite Orinko Advanced and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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