Correlation Between Origin Agritech and National Storage
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and National Storage 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 National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and National Storage Affiliates, you can compare the effects of market volatilities on Origin Agritech and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and National Storage.
Diversification Opportunities for Origin Agritech and National Storage
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Origin and National is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Origin Agritech i.e., Origin Agritech and National Storage go up and down completely randomly.
Pair Corralation between Origin Agritech and National Storage
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the National Storage. In addition to that, Origin Agritech is 3.37 times more volatile than National Storage Affiliates. It trades about -0.02 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about 0.03 per unit of volatility. If you would invest 3,301 in National Storage Affiliates on August 25, 2024 and sell it today you would earn a total of 831.00 from holding National Storage Affiliates or generate 25.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. National Storage Affiliates
Performance |
| Timeline |
| Origin Agritech |
| National Storage Aff |
Origin Agritech and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and National Storage
The main advantage of trading using opposite Origin Agritech and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| Origin Agritech vs. Mizuho Financial Group | Origin Agritech vs. Mitsui Chemicals | Origin Agritech vs. PT Bank Maybank | Origin Agritech vs. REVO INSURANCE SPA |
| National Storage vs. Superior Plus Corp | National Storage vs. Origin Agritech | National Storage vs. Identiv | National Storage vs. INTUITIVE SURGICAL |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |