Correlation Between Origin Agritech and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and ZIM Integrated 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 ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and ZIM Integrated Shipping, you can compare the effects of market volatilities on Origin Agritech and ZIM Integrated 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 ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and ZIM Integrated.
Diversification Opportunities for Origin Agritech and ZIM Integrated
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and ZIM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and ZIM Integrated Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIM Integrated Shipping 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 ZIM Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIM Integrated Shipping has no effect on the direction of Origin Agritech i.e., Origin Agritech and ZIM Integrated go up and down completely randomly.
Pair Corralation between Origin Agritech and ZIM Integrated
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the ZIM Integrated. But the stock apears to be less risky and, when comparing its historical volatility, Origin Agritech is 1.52 times less risky than ZIM Integrated. The stock trades about -0.04 of its potential returns per unit of risk. The ZIM Integrated Shipping is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,111 in ZIM Integrated Shipping on August 29, 2024 and sell it today you would lose (15.00) from holding ZIM Integrated Shipping or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Agritech vs. ZIM Integrated Shipping
Performance |
| Timeline |
| Origin Agritech |
| ZIM Integrated Shipping |
Origin Agritech and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and ZIM Integrated
The main advantage of trading using opposite Origin Agritech and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, ZIM Integrated 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 ZIM Integrated will offset losses from the drop in ZIM Integrated'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 |
| ZIM Integrated vs. EVS Broadcast Equipment | ZIM Integrated vs. SCANSOURCE | ZIM Integrated vs. KENEDIX OFFICE INV | ZIM Integrated vs. TITANIUM TRANSPORTGROUP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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