Correlation Between Origin Agritech and CM AM
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By analyzing existing cross correlation between Origin Agritech and CM AM Monplus NE, you can compare the effects of market volatilities on Origin Agritech and CM AM 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 CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and CM AM.
Diversification Opportunities for Origin Agritech and CM AM
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and 0P0001F96C is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus 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 CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of Origin Agritech i.e., Origin Agritech and CM AM go up and down completely randomly.
Pair Corralation between Origin Agritech and CM AM
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the CM AM. In addition to that, Origin Agritech is 388.99 times more volatile than CM AM Monplus NE. It trades about -0.04 of its total potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.17 per unit of volatility. If you would invest 10,576 in CM AM Monplus NE on August 29, 2024 and sell it today you would earn a total of 28.00 from holding CM AM Monplus NE or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Agritech vs. CM AM Monplus NE
Performance |
| Timeline |
| Origin Agritech |
| CM AM Monplus |
Origin Agritech and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and CM AM
The main advantage of trading using opposite Origin Agritech and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.| Origin Agritech vs. Playtech plc | Origin Agritech vs. AAC TECHNOLOGHLDGADR | Origin Agritech vs. SCANDMEDICAL SOLDK 040 | Origin Agritech vs. ONWARD MEDICAL BV |
| CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. Echiquier Entrepreneurs G |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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