Correlation Between Origin Agritech and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and SCG PACKAGING 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 SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and SCG PACKAGING FGN , you can compare the effects of market volatilities on Origin Agritech and SCG PACKAGING 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 SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and SCG PACKAGING.
Diversification Opportunities for Origin Agritech and SCG PACKAGING
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and SCG is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and SCG PACKAGING FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING FGN 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 SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING FGN has no effect on the direction of Origin Agritech i.e., Origin Agritech and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Origin Agritech and SCG PACKAGING
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.23 times more return on investment than SCG PACKAGING. However, Origin Agritech is 1.23 times more volatile than SCG PACKAGING FGN . It trades about 0.05 of its potential returns per unit of risk. SCG PACKAGING FGN is currently generating about 0.05 per unit of risk. If you would invest 183.00 in Origin Agritech on September 2, 2024 and sell it today you would earn a total of 59.00 from holding Origin Agritech or generate 32.24% 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. SCG PACKAGING FGN
Performance |
| Timeline |
| Origin Agritech |
| SCG PACKAGING FGN |
Origin Agritech and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and SCG PACKAGING
The main advantage of trading using opposite Origin Agritech and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| Origin Agritech vs. CENTURIA OFFICE REIT | Origin Agritech vs. Ryanair Holdings plc | Origin Agritech vs. KENEDIX OFFICE INV | Origin Agritech vs. MAVEN WIRELESS SWEDEN |
| SCG PACKAGING vs. Packaging of | SCG PACKAGING vs. Smurfit Kappa Group | SCG PACKAGING vs. Superior Plus Corp | SCG PACKAGING 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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