Correlation Between Origin Agritech and 2G ENERGY
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and 2G ENERGY 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 2G ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and 2G ENERGY , you can compare the effects of market volatilities on Origin Agritech and 2G ENERGY 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 2G ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and 2G ENERGY.
Diversification Opportunities for Origin Agritech and 2G ENERGY
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and 2GB is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and 2G ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2G ENERGY 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 2G ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2G ENERGY has no effect on the direction of Origin Agritech i.e., Origin Agritech and 2G ENERGY go up and down completely randomly.
Pair Corralation between Origin Agritech and 2G ENERGY
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.31 times more return on investment than 2G ENERGY. However, Origin Agritech is 1.31 times more volatile than 2G ENERGY . It trades about -0.04 of its potential returns per unit of risk. 2G ENERGY is currently generating about -0.06 per unit of risk. 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 | 95.65% |
| Values | Daily Returns |
Origin Agritech vs. 2G ENERGY
Performance |
| Timeline |
| Origin Agritech |
| 2G ENERGY |
Origin Agritech and 2G ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and 2G ENERGY
The main advantage of trading using opposite Origin Agritech and 2G ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, 2G ENERGY 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 2G ENERGY will offset losses from the drop in 2G ENERGY'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 |
| 2G ENERGY vs. FISH PAYK HEALTH | 2G ENERGY vs. GREENX METALS LTD | 2G ENERGY vs. Lion One Metals | 2G ENERGY vs. Zijin Mining 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |