Correlation Between Origin Agritech and AdCapital
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and AdCapital 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 AdCapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and AdCapital AG, you can compare the effects of market volatilities on Origin Agritech and AdCapital 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 AdCapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and AdCapital.
Diversification Opportunities for Origin Agritech and AdCapital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and AdCapital is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and AdCapital AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdCapital AG 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 AdCapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdCapital AG has no effect on the direction of Origin Agritech i.e., Origin Agritech and AdCapital go up and down completely randomly.
Pair Corralation between Origin Agritech and AdCapital
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the AdCapital. In addition to that, Origin Agritech is 1.88 times more volatile than AdCapital AG. It trades about -0.02 of its total potential returns per unit of risk. AdCapital AG is currently generating about 0.04 per unit of volatility. If you would invest 152.00 in AdCapital AG on August 29, 2024 and sell it today you would earn a total of 70.00 from holding AdCapital AG or generate 46.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. AdCapital AG
Performance |
| Timeline |
| Origin Agritech |
| AdCapital AG |
Origin Agritech and AdCapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and AdCapital
The main advantage of trading using opposite Origin Agritech and AdCapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, AdCapital 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 AdCapital will offset losses from the drop in AdCapital'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 |
| AdCapital vs. Superior Plus Corp | AdCapital vs. NMI Holdings | AdCapital vs. Origin Agritech | AdCapital vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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