Correlation Between Origin Agritech and ONWARD MEDICAL
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and ONWARD MEDICAL 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 ONWARD MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and ONWARD MEDICAL BV, you can compare the effects of market volatilities on Origin Agritech and ONWARD MEDICAL 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 ONWARD MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and ONWARD MEDICAL.
Diversification Opportunities for Origin Agritech and ONWARD MEDICAL
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and ONWARD is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and ONWARD MEDICAL BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONWARD MEDICAL BV 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 ONWARD MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONWARD MEDICAL BV has no effect on the direction of Origin Agritech i.e., Origin Agritech and ONWARD MEDICAL go up and down completely randomly.
Pair Corralation between Origin Agritech and ONWARD MEDICAL
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.24 times more return on investment than ONWARD MEDICAL. However, Origin Agritech is 1.24 times more volatile than ONWARD MEDICAL BV. It trades about 0.0 of its potential returns per unit of risk. ONWARD MEDICAL BV is currently generating about -0.02 per unit of risk. If you would invest 246.00 in Origin Agritech on August 29, 2024 and sell it today you would lose (12.00) from holding Origin Agritech or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. ONWARD MEDICAL BV
Performance |
| Timeline |
| Origin Agritech |
| ONWARD MEDICAL BV |
Origin Agritech and ONWARD MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and ONWARD MEDICAL
The main advantage of trading using opposite Origin Agritech and ONWARD MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, ONWARD MEDICAL 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 ONWARD MEDICAL will offset losses from the drop in ONWARD MEDICAL's long position.| Origin Agritech vs. Playtech plc | Origin Agritech vs. AAC TECHNOLOGHLDGADR | Origin Agritech vs. SCANDMEDICAL SOLDK 040 | Origin Agritech vs. ONWARD MEDICAL BV |
| ONWARD MEDICAL vs. Mercedes Benz Group AG | ONWARD MEDICAL vs. Superior Plus Corp | ONWARD MEDICAL vs. NMI Holdings | ONWARD MEDICAL 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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