Correlation Between Oriola Oyj and Beijing Tong
Can any of the company-specific risk be diversified away by investing in both Oriola Oyj and Beijing Tong at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oriola Oyj and Beijing Tong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriola Oyj and Beijing Tong Ren, you can compare the effects of market volatilities on Oriola Oyj and Beijing Tong 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 Oriola Oyj with a short position of Beijing Tong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriola Oyj and Beijing Tong.
Diversification Opportunities for Oriola Oyj and Beijing Tong
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oriola and Beijing is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Oriola Oyj and Beijing Tong Ren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tong Ren and Oriola Oyj 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 Oriola Oyj are associated (or correlated) with Beijing Tong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tong Ren has no effect on the direction of Oriola Oyj i.e., Oriola Oyj and Beijing Tong go up and down completely randomly.
Pair Corralation between Oriola Oyj and Beijing Tong
Assuming the 90 days horizon Oriola Oyj is expected to under-perform the Beijing Tong. In addition to that, Oriola Oyj is 1.28 times more volatile than Beijing Tong Ren. It trades about -0.07 of its total potential returns per unit of risk. Beijing Tong Ren is currently generating about 0.01 per unit of volatility. If you would invest 98.00 in Beijing Tong Ren on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Beijing Tong Ren or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriola Oyj vs. Beijing Tong Ren
Performance |
| Timeline |
| Oriola Oyj |
| Beijing Tong Ren |
Oriola Oyj and Beijing Tong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriola Oyj and Beijing Tong
The main advantage of trading using opposite Oriola Oyj and Beijing Tong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriola Oyj position performs unexpectedly, Beijing Tong 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 Beijing Tong will offset losses from the drop in Beijing Tong's long position.| Oriola Oyj vs. Walgreens Boots Alliance | Oriola Oyj vs. Alibaba Health Information | Oriola Oyj vs. Sugi Holdings CoLtd | Oriola Oyj vs. Beijing Tong Ren |
| Beijing Tong vs. REGAL ASIAN INVESTMENTS | Beijing Tong vs. Jacquet Metal Service | Beijing Tong vs. AGNC INVESTMENT | Beijing Tong vs. Evolution Mining Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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