Correlation Between Altia Oyj and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Altia Oyj 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 Altia Oyj and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altia Oyj and Origin Agritech, you can compare the effects of market volatilities on Altia Oyj 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 Altia Oyj with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altia Oyj and Origin Agritech.
Diversification Opportunities for Altia Oyj and Origin Agritech
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Altia and Origin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Altia Oyj and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Altia 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 Altia Oyj 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 Altia Oyj i.e., Altia Oyj and Origin Agritech go up and down completely randomly.
Pair Corralation between Altia Oyj and Origin Agritech
Assuming the 90 days horizon Altia Oyj is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, Altia Oyj is 2.51 times less risky than Origin Agritech. The stock trades about -0.55 of its potential returns per unit of risk. The Origin Agritech is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 246.00 in Origin Agritech on August 29, 2024 and sell it today you would lose (12.00) from holding Origin Agritech or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altia Oyj vs. Origin Agritech
Performance |
| Timeline |
| Altia Oyj |
| Origin Agritech |
Altia Oyj and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altia Oyj and Origin Agritech
The main advantage of trading using opposite Altia Oyj and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altia Oyj 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.| Altia Oyj vs. LANSON BCC INH EO | Altia Oyj vs. VIRGIN WINES UK | Altia Oyj vs. Superior Plus Corp | Altia Oyj vs. NMI Holdings |
| Origin Agritech vs. 24SEVENOFFICE GROUP AB | Origin Agritech vs. MAVEN WIRELESS SWEDEN | Origin Agritech vs. SIDETRADE EO 1 | Origin Agritech vs. HK Electric Investments |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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