Correlation Between Origin Agritech and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Ameriprise Financial 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 Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Ameriprise Financial, you can compare the effects of market volatilities on Origin Agritech and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Ameriprise Financial.
Diversification Opportunities for Origin Agritech and Ameriprise Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Ameriprise is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Origin Agritech i.e., Origin Agritech and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Origin Agritech and Ameriprise Financial
Assuming the 90 days trading horizon Origin Agritech is expected to generate 8.88 times less return on investment than Ameriprise Financial. In addition to that, Origin Agritech is 1.86 times more volatile than Ameriprise Financial. It trades about 0.01 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.21 per unit of volatility. If you would invest 47,389 in Ameriprise Financial on August 30, 2024 and sell it today you would earn a total of 6,671 from holding Ameriprise Financial or generate 14.08% 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. Ameriprise Financial
Performance |
| Timeline |
| Origin Agritech |
| Ameriprise Financial |
Origin Agritech and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Ameriprise Financial
The main advantage of trading using opposite Origin Agritech and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| Origin Agritech vs. OAKTRSPECLENDNEW | Origin Agritech vs. Jacquet Metal Service | Origin Agritech vs. MCEWEN MINING INC | Origin Agritech vs. URBAN OUTFITTERS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |