Correlation Between Origin Agritech and BlackRock Global

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Can any of the company-specific risk be diversified away by investing in both Origin Agritech and BlackRock Global 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 Origin Agritech and BlackRock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and BlackRock Global Funds, you can compare the effects of market volatilities on Origin Agritech and BlackRock Global 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 Origin Agritech with a short position of BlackRock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BlackRock Global.

Diversification Opportunities for Origin Agritech and BlackRock Global

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Origin and BlackRock is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BlackRock Global Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Global Funds and Origin Agritech 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 Origin Agritech are associated (or correlated) with BlackRock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Global Funds has no effect on the direction of Origin Agritech i.e., Origin Agritech and BlackRock Global go up and down completely randomly.

Pair Corralation between Origin Agritech and BlackRock Global

Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.24 times less return on investment than BlackRock Global. In addition to that, Origin Agritech is 5.1 times more volatile than BlackRock Global Funds. It trades about 0.01 of its total potential returns per unit of risk. BlackRock Global Funds is currently generating about 0.09 per unit of volatility. If you would invest  5,023  in BlackRock Global Funds on September 13, 2024 and sell it today you would earn a total of  83.00  from holding BlackRock Global Funds or generate 1.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Origin Agritech  vs.  BlackRock Global Funds

 Performance 
       Timeline  
Origin Agritech 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Origin Agritech are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Origin Agritech may actually be approaching a critical reversion point that can send shares even higher in January 2025.
BlackRock Global Funds 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Global Funds are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady basic indicators, BlackRock Global is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Origin Agritech and BlackRock Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Origin Agritech and BlackRock Global

The main advantage of trading using opposite Origin Agritech and BlackRock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BlackRock Global 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 BlackRock Global will offset losses from the drop in BlackRock Global's long position.
The idea behind Origin Agritech and BlackRock Global Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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