Correlation Between Origin Agritech and Logista
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Logista 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 Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Logista, you can compare the effects of market volatilities on Origin Agritech and Logista 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 Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Logista.
Diversification Opportunities for Origin Agritech and Logista
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Origin and Logista is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista 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 Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of Origin Agritech i.e., Origin Agritech and Logista go up and down completely randomly.
Pair Corralation between Origin Agritech and Logista
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Logista. In addition to that, Origin Agritech is 5.89 times more volatile than Logista. It trades about -0.07 of its total potential returns per unit of risk. Logista is currently generating about 0.1 per unit of volatility. If you would invest 2,578 in Logista on September 14, 2024 and sell it today you would earn a total of 322.00 from holding Logista or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Logista
Performance |
| Timeline |
| Origin Agritech |
| Logista |
Origin Agritech and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Logista
The main advantage of trading using opposite Origin Agritech and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.| Origin Agritech vs. GRIFFIN MINING LTD | Origin Agritech vs. MCEWEN MINING INC | Origin Agritech vs. BRAGG GAMING GRP | Origin Agritech vs. Boyd Gaming |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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