Correlation Between Origin Agritech and Fiverr International
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Fiverr International 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 Fiverr International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Fiverr International, you can compare the effects of market volatilities on Origin Agritech and Fiverr International 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 Fiverr International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Fiverr International.
Diversification Opportunities for Origin Agritech and Fiverr International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Fiverr is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Fiverr International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiverr International 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 Fiverr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiverr International has no effect on the direction of Origin Agritech i.e., Origin Agritech and Fiverr International go up and down completely randomly.
Pair Corralation between Origin Agritech and Fiverr International
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Fiverr International. In addition to that, Origin Agritech is 1.48 times more volatile than Fiverr International. It trades about -0.01 of its total potential returns per unit of risk. Fiverr International is currently generating about 0.02 per unit of volatility. If you would invest 3,010 in Fiverr International on September 3, 2024 and sell it today you would earn a total of 112.00 from holding Fiverr International or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Fiverr International
Performance |
| Timeline |
| Origin Agritech |
| Fiverr International |
Origin Agritech and Fiverr International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Fiverr International
The main advantage of trading using opposite Origin Agritech and Fiverr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Fiverr International 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 Fiverr International will offset losses from the drop in Fiverr International's long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| Fiverr International vs. Automatic Data Processing | Fiverr International vs. Fiserv Inc | Fiverr International vs. Paychex | Fiverr International vs. Experian plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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