Correlation Between Sinotrans and Orient Sec
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By analyzing existing cross correlation between Sinotrans Ltd Class and Orient Sec Co, you can compare the effects of market volatilities on Sinotrans and Orient Sec 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 Sinotrans with a short position of Orient Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Orient Sec.
Diversification Opportunities for Sinotrans and Orient Sec
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinotrans and Orient is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class and Orient Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Sec and Sinotrans 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 Sinotrans Ltd Class are associated (or correlated) with Orient Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Sec has no effect on the direction of Sinotrans i.e., Sinotrans and Orient Sec go up and down completely randomly.
Pair Corralation between Sinotrans and Orient Sec
Assuming the 90 days trading horizon Sinotrans is expected to generate 4.31 times less return on investment than Orient Sec. In addition to that, Sinotrans is 1.1 times more volatile than Orient Sec Co. It trades about 0.01 of its total potential returns per unit of risk. Orient Sec Co is currently generating about 0.05 per unit of volatility. If you would invest 870.00 in Orient Sec Co on September 24, 2024 and sell it today you would earn a total of 185.00 from holding Orient Sec Co or generate 21.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sinotrans Ltd Class vs. Orient Sec Co
Performance |
Timeline |
Sinotrans Class |
Orient Sec |
Sinotrans and Orient Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinotrans and Orient Sec
The main advantage of trading using opposite Sinotrans and Orient Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans position performs unexpectedly, Orient Sec 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 Orient Sec will offset losses from the drop in Orient Sec's long position.Sinotrans vs. Holitech Technology Co | Sinotrans vs. Ningbo Thermal Power | Sinotrans vs. Niutech Environment Technology | Sinotrans vs. Sinofibers Technology Co |
Orient Sec vs. Kweichow Moutai Co | Orient Sec vs. Contemporary Amperex Technology | Orient Sec vs. G bits Network Technology | Orient Sec vs. BYD Co Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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