Correlation Between Origin Agritech and LANDSEA GREEN
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and LANDSEA GREEN 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 LANDSEA GREEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and LANDSEA GREEN MANAGEMENT, you can compare the effects of market volatilities on Origin Agritech and LANDSEA GREEN 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 LANDSEA GREEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and LANDSEA GREEN.
Diversification Opportunities for Origin Agritech and LANDSEA GREEN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and LANDSEA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and LANDSEA GREEN MANAGEMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANDSEA GREEN MANAGEMENT has no effect on the direction of Origin Agritech i.e., Origin Agritech and LANDSEA GREEN go up and down completely randomly.
Pair Corralation between Origin Agritech and LANDSEA GREEN
If you would invest 0.10 in LANDSEA GREEN MANAGEMENT on October 25, 2024 and sell it today you would earn a total of 0.00 from holding LANDSEA GREEN MANAGEMENT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. LANDSEA GREEN MANAGEMENT
Performance |
| Timeline |
| Origin Agritech |
| LANDSEA GREEN MANAGEMENT |
Origin Agritech and LANDSEA GREEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and LANDSEA GREEN
The main advantage of trading using opposite Origin Agritech and LANDSEA GREEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, LANDSEA GREEN 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 LANDSEA GREEN will offset losses from the drop in LANDSEA GREEN's long position.| Origin Agritech vs. Richardson Electronics | Origin Agritech vs. KIMBALL ELECTRONICS | Origin Agritech vs. Japan Tobacco | Origin Agritech vs. STMicroelectronics NV |
| LANDSEA GREEN vs. China Resources Land | LANDSEA GREEN vs. CTP NV EO | LANDSEA GREEN vs. Superior Plus Corp | LANDSEA GREEN 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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