Correlation Between Origin Agritech and BBVA Banco
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and BBVA Banco 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 BBVA Banco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and BBVA Banco Frances, you can compare the effects of market volatilities on Origin Agritech and BBVA Banco 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 BBVA Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BBVA Banco.
Diversification Opportunities for Origin Agritech and BBVA Banco
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and BBVA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BBVA Banco Frances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVA Banco Frances 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 BBVA Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVA Banco Frances has no effect on the direction of Origin Agritech i.e., Origin Agritech and BBVA Banco go up and down completely randomly.
Pair Corralation between Origin Agritech and BBVA Banco
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the BBVA Banco. In addition to that, Origin Agritech is 1.07 times more volatile than BBVA Banco Frances. It trades about -0.2 of its total potential returns per unit of risk. BBVA Banco Frances is currently generating about -0.15 per unit of volatility. If you would invest 1,690 in BBVA Banco Frances on January 13, 2025 and sell it today you would lose (290.00) from holding BBVA Banco Frances or give up 17.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. BBVA Banco Frances
Performance |
| Timeline |
| Origin Agritech |
| BBVA Banco Frances |
Origin Agritech and BBVA Banco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and BBVA Banco
The main advantage of trading using opposite Origin Agritech and BBVA Banco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BBVA Banco 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 BBVA Banco will offset losses from the drop in BBVA Banco's long position.| Origin Agritech vs. United Microelectronics Corp | Origin Agritech vs. ARROW ELECTRONICS | Origin Agritech vs. STMicroelectronics NV | Origin Agritech vs. PennyMac Mortgage Investment |
| BBVA Banco vs. KAUFMAN ET BROAD | BBVA Banco vs. Zijin Mining Group | BBVA Banco vs. United Rentals | BBVA Banco vs. Lendlease Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |