Correlation Between Crown Advanced and Orinko Advanced
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By analyzing existing cross correlation between Crown Advanced Material and Orinko Advanced Plastics, you can compare the effects of market volatilities on Crown Advanced and Orinko Advanced 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 Crown Advanced with a short position of Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Advanced and Orinko Advanced.
Diversification Opportunities for Crown Advanced and Orinko Advanced
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crown and Orinko is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Crown Advanced Material and Orinko Advanced Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orinko Advanced Plastics and Crown 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 Crown Advanced Material are associated (or correlated) with Orinko Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orinko Advanced Plastics has no effect on the direction of Crown Advanced i.e., Crown Advanced and Orinko Advanced go up and down completely randomly.
Pair Corralation between Crown Advanced and Orinko Advanced
Assuming the 90 days trading horizon Crown Advanced Material is expected to under-perform the Orinko Advanced. In addition to that, Crown Advanced is 1.4 times more volatile than Orinko Advanced Plastics. It trades about -0.26 of its total potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.03 per unit of volatility. If you would invest 899.00 in Orinko Advanced Plastics on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Orinko Advanced Plastics or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Advanced Material vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Crown Advanced Material |
| Orinko Advanced Plastics |
Crown Advanced and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Advanced and Orinko Advanced
The main advantage of trading using opposite Crown Advanced and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Advanced position performs unexpectedly, Orinko Advanced 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 Orinko Advanced will offset losses from the drop in Orinko Advanced's long position.| Crown Advanced vs. Zijin Mining Group | Crown Advanced vs. Wanhua Chemical Group | Crown Advanced vs. Baoshan Iron Steel | Crown Advanced vs. Shandong Gold Mining |
| Orinko Advanced vs. Guangdong Brandmax Marketing | Orinko Advanced vs. Ningxia Younglight Chemicals | Orinko Advanced vs. Saurer Intelligent Technology | Orinko Advanced vs. Shandong Polymer Biochemicals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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