Correlation Between Origin Agritech and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Equitable Holdings, you can compare the effects of market volatilities on Origin Agritech and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Equitable Holdings.
Diversification Opportunities for Origin Agritech and Equitable Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Equitable is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Origin Agritech i.e., Origin Agritech and Equitable Holdings go up and down completely randomly.
Pair Corralation between Origin Agritech and Equitable Holdings
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Equitable Holdings. In addition to that, Origin Agritech is 3.08 times more volatile than Equitable Holdings. It trades about -0.01 of its total potential returns per unit of risk. Equitable Holdings is currently generating about 0.06 per unit of volatility. If you would invest 2,678 in Equitable Holdings on September 3, 2024 and sell it today you would earn a total of 1,802 from holding Equitable Holdings or generate 67.29% 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. Equitable Holdings
Performance |
| Timeline |
| Origin Agritech |
| Equitable Holdings |
Origin Agritech and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Equitable Holdings
The main advantage of trading using opposite Origin Agritech and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| Equitable Holdings vs. Allianz SE | Equitable Holdings vs. Superior Plus Corp | Equitable Holdings vs. NMI Holdings | Equitable Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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