Correlation Between Firan Technology and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Origin Agritech 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 Firan Technology and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firan Technology Group and Origin Agritech, you can compare the effects of market volatilities on Firan Technology and Origin Agritech 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 Firan Technology with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Origin Agritech.
Diversification Opportunities for Firan Technology and Origin Agritech
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firan and Origin is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Firan Technology 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 Firan Technology Group are associated (or correlated) with Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of Firan Technology i.e., Firan Technology and Origin Agritech go up and down completely randomly.
Pair Corralation between Firan Technology and Origin Agritech
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.4 times more return on investment than Origin Agritech. However, Firan Technology Group is 2.5 times less risky than Origin Agritech. It trades about 0.11 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.02 per unit of risk. If you would invest 156.00 in Firan Technology Group on October 12, 2024 and sell it today you would earn a total of 326.00 from holding Firan Technology Group or generate 208.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Origin Agritech
Performance |
| Timeline |
| Firan Technology |
| Origin Agritech |
Firan Technology and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Origin Agritech
The main advantage of trading using opposite Firan Technology and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| Firan Technology vs. MICRONIC MYDATA | Firan Technology vs. NTT DATA | Firan Technology vs. MPH Health Care | Firan Technology vs. China Datang |
| Origin Agritech vs. Fair Isaac Corp | Origin Agritech vs. The Hongkong and | Origin Agritech vs. Pentair plc | Origin Agritech vs. NH HOTEL 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 Stocks Directory module to find actively traded stocks across global markets.
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