Correlation Between Origin Agritech and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and BANK HANDLOWY 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 BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and BANK HANDLOWY, you can compare the effects of market volatilities on Origin Agritech and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BANK HANDLOWY.
Diversification Opportunities for Origin Agritech and BANK HANDLOWY
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and BANK is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Origin Agritech i.e., Origin Agritech and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Origin Agritech and BANK HANDLOWY
Assuming the 90 days trading horizon Origin Agritech is expected to generate 6.3 times more return on investment than BANK HANDLOWY. However, Origin Agritech is 6.3 times more volatile than BANK HANDLOWY. It trades about 0.13 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.66 per unit of risk. If you would invest 176.00 in Origin Agritech on November 18, 2024 and sell it today you would earn a total of 28.00 from holding Origin Agritech or generate 15.91% 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. BANK HANDLOWY
Performance |
| Timeline |
| Origin Agritech |
| BANK HANDLOWY |
Origin Agritech and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and BANK HANDLOWY
The main advantage of trading using opposite Origin Agritech and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| Origin Agritech vs. Siamgas And Petrochemicals | Origin Agritech vs. BRAGG GAMING GRP | Origin Agritech vs. Soken Chemical Engineering | Origin Agritech vs. Eastman Chemical |
| BANK HANDLOWY vs. PACIFIC ONLINE | BANK HANDLOWY vs. CarsalesCom | BANK HANDLOWY vs. MUTUIONLINE | BANK HANDLOWY vs. BioNTech SE |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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