Correlation Between Origin Agritech and BB Biotech
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By analyzing existing cross correlation between Origin Agritech and BB Biotech AG, you can compare the effects of market volatilities on Origin Agritech and BB Biotech 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 BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BB Biotech.
Diversification Opportunities for Origin Agritech and BB Biotech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and BBZA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech 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 BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of Origin Agritech i.e., Origin Agritech and BB Biotech go up and down completely randomly.
Pair Corralation between Origin Agritech and BB Biotech
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.14 times more return on investment than BB Biotech. However, Origin Agritech is 3.14 times more volatile than BB Biotech AG. It trades about 0.04 of its potential returns per unit of risk. BB Biotech AG is currently generating about 0.09 per unit of risk. If you would invest 238.00 in Origin Agritech on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Origin Agritech or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Agritech vs. BB Biotech AG
Performance |
| Timeline |
| Origin Agritech |
| BB Biotech AG |
Origin Agritech and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and BB Biotech
The main advantage of trading using opposite Origin Agritech and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| Origin Agritech vs. CARSALESCOM | Origin Agritech vs. Uber Technologies | Origin Agritech vs. GEELY AUTOMOBILE | Origin Agritech vs. Playtech plc |
| BB Biotech vs. MITSUBISHI STEEL MFG | BB Biotech vs. SERI INDUSTRIAL EO | BB Biotech vs. LION ONE METALS | BB Biotech vs. Harmony Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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