Correlation Between Origin Agritech and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Amcor Plc 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 Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Amcor plc, you can compare the effects of market volatilities on Origin Agritech and Amcor Plc 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 Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Amcor Plc.
Diversification Opportunities for Origin Agritech and Amcor Plc
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and Amcor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc 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 Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of Origin Agritech i.e., Origin Agritech and Amcor Plc go up and down completely randomly.
Pair Corralation between Origin Agritech and Amcor Plc
Assuming the 90 days trading horizon Origin Agritech is expected to generate 8.76 times less return on investment than Amcor Plc. In addition to that, Origin Agritech is 1.88 times more volatile than Amcor plc. It trades about 0.01 of its total potential returns per unit of risk. Amcor plc is currently generating about 0.09 per unit of volatility. If you would invest 927.00 in Amcor plc on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Amcor plc or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Amcor plc
Performance |
| Timeline |
| Origin Agritech |
| Amcor plc |
Origin Agritech and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Amcor Plc
The main advantage of trading using opposite Origin Agritech and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| Origin Agritech vs. REINET INVESTMENTS SCA | Origin Agritech vs. AOYAMA TRADING | Origin Agritech vs. Japan Asia Investment | Origin Agritech vs. MAROC TELECOM |
| Amcor Plc vs. Packaging of | Amcor Plc vs. Graphic Packaging Holding | Amcor Plc vs. Superior Plus Corp | Amcor Plc vs. SIVERS SEMICONDUCTORS AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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