Correlation Between Origin Agritech and TOTAL ENERGY
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and TOTAL 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 TOTAL 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 TOTAL ENERGY SERVS, you can compare the effects of market volatilities on Origin Agritech and TOTAL 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 TOTAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and TOTAL ENERGY.
Diversification Opportunities for Origin Agritech and TOTAL ENERGY
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and TOTAL is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and TOTAL ENERGY SERVS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL ENERGY SERVS 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 TOTAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL ENERGY SERVS has no effect on the direction of Origin Agritech i.e., Origin Agritech and TOTAL ENERGY go up and down completely randomly.
Pair Corralation between Origin Agritech and TOTAL ENERGY
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.11 times less return on investment than TOTAL ENERGY. In addition to that, Origin Agritech is 2.08 times more volatile than TOTAL ENERGY SERVS. It trades about 0.06 of its total potential returns per unit of risk. TOTAL ENERGY SERVS is currently generating about 0.4 per unit of volatility. If you would invest 623.00 in TOTAL ENERGY SERVS on September 3, 2024 and sell it today you would earn a total of 142.00 from holding TOTAL ENERGY SERVS or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. TOTAL ENERGY SERVS
Performance |
| Timeline |
| Origin Agritech |
| TOTAL ENERGY SERVS |
Origin Agritech and TOTAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and TOTAL ENERGY
The main advantage of trading using opposite Origin Agritech and TOTAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, TOTAL 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 TOTAL ENERGY will offset losses from the drop in TOTAL ENERGY's long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| TOTAL ENERGY vs. Halliburton | TOTAL ENERGY vs. Superior Plus Corp | TOTAL ENERGY vs. NMI Holdings | TOTAL ENERGY vs. Origin Agritech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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