Correlation Between Origin Agritech and COPLAND ROAD
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and COPLAND ROAD 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 COPLAND ROAD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and COPLAND ROAD CAPITAL, you can compare the effects of market volatilities on Origin Agritech and COPLAND ROAD 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 COPLAND ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and COPLAND ROAD.
Diversification Opportunities for Origin Agritech and COPLAND ROAD
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and COPLAND is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and COPLAND ROAD CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPLAND ROAD CAPITAL 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 COPLAND ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPLAND ROAD CAPITAL has no effect on the direction of Origin Agritech i.e., Origin Agritech and COPLAND ROAD go up and down completely randomly.
Pair Corralation between Origin Agritech and COPLAND ROAD
Assuming the 90 days trading horizon Origin Agritech is expected to generate 2.86 times more return on investment than COPLAND ROAD. However, Origin Agritech is 2.86 times more volatile than COPLAND ROAD CAPITAL. It trades about -0.04 of its potential returns per unit of risk. COPLAND ROAD CAPITAL is currently generating about -0.17 per unit of risk. If you would invest 246.00 in Origin Agritech on August 27, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. COPLAND ROAD CAPITAL
Performance |
| Timeline |
| Origin Agritech |
| COPLAND ROAD CAPITAL |
Origin Agritech and COPLAND ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and COPLAND ROAD
The main advantage of trading using opposite Origin Agritech and COPLAND ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, COPLAND ROAD 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 COPLAND ROAD will offset losses from the drop in COPLAND ROAD's long position.| Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc |
| COPLAND ROAD vs. CN MODERN DAIRY | COPLAND ROAD vs. Dairy Farm International | COPLAND ROAD vs. Food Life Companies | COPLAND ROAD vs. Beyond Meat |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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