Correlation Between Origin Agritech and Grupo Aval
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Grupo Aval 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 Grupo Aval into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Grupo Aval Acciones, you can compare the effects of market volatilities on Origin Agritech and Grupo Aval 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 Grupo Aval. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Grupo Aval.
Diversification Opportunities for Origin Agritech and Grupo Aval
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Grupo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Grupo Aval Acciones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aval Acciones 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 Grupo Aval. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aval Acciones has no effect on the direction of Origin Agritech i.e., Origin Agritech and Grupo Aval go up and down completely randomly.
Pair Corralation between Origin Agritech and Grupo Aval
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Grupo Aval. In addition to that, Origin Agritech is 2.54 times more volatile than Grupo Aval Acciones. It trades about -0.04 of its total potential returns per unit of risk. Grupo Aval Acciones is currently generating about 0.23 per unit of volatility. If you would invest 184.00 in Grupo Aval Acciones on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Grupo Aval Acciones or generate 7.61% 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. Grupo Aval Acciones
Performance |
| Timeline |
| Origin Agritech |
| Grupo Aval Acciones |
Origin Agritech and Grupo Aval Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Grupo Aval
The main advantage of trading using opposite Origin Agritech and Grupo Aval positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Grupo Aval 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 Grupo Aval will offset losses from the drop in Grupo Aval's long position.| Origin Agritech vs. 24SEVENOFFICE GROUP AB | Origin Agritech vs. MAVEN WIRELESS SWEDEN | Origin Agritech vs. SIDETRADE EO 1 | Origin Agritech vs. HK Electric Investments |
| Grupo Aval vs. Deutsche Bank Aktiengesellschaft | Grupo Aval vs. Superior Plus Corp | Grupo Aval vs. NMI Holdings | Grupo Aval 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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