Correlation Between Origin Agritech and Air Lease
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Air Lease 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 Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Air Lease, you can compare the effects of market volatilities on Origin Agritech and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Air Lease.
Diversification Opportunities for Origin Agritech and Air Lease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Origin Agritech i.e., Origin Agritech and Air Lease go up and down completely randomly.
Pair Corralation between Origin Agritech and Air Lease
If you would invest 4,138 in Air Lease on August 30, 2024 and sell it today you would earn a total of 602.00 from holding Air Lease or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Origin Agritech vs. Air Lease
Performance |
| Timeline |
| Origin Agritech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Air Lease |
Origin Agritech and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Air Lease
The main advantage of trading using opposite Origin Agritech and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| Origin Agritech vs. FORMPIPE SOFTWARE AB | Origin Agritech vs. PTT Global Chemical | Origin Agritech vs. Magic Software Enterprises | Origin Agritech vs. UPDATE SOFTWARE |
| Air Lease vs. Strategic Education | Air Lease vs. VIRGIN WINES UK | Air Lease vs. American Public Education | Air Lease vs. Gol Intelligent Airlines |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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