Correlation Between Origin Agritech and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Bollor SE 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 Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Bollor SE, you can compare the effects of market volatilities on Origin Agritech and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Bollor SE.
Diversification Opportunities for Origin Agritech and Bollor SE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and Bollor is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Origin Agritech i.e., Origin Agritech and Bollor SE go up and down completely randomly.
Pair Corralation between Origin Agritech and Bollor SE
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Bollor SE. In addition to that, Origin Agritech is 3.58 times more volatile than Bollor SE. It trades about -0.08 of its total potential returns per unit of risk. Bollor SE is currently generating about -0.02 per unit of volatility. If you would invest 616.00 in Bollor SE on September 1, 2024 and sell it today you would lose (28.00) from holding Bollor SE or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Origin Agritech vs. Bollor SE
Performance |
| Timeline |
| Origin Agritech |
| Bollor SE |
Origin Agritech and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Bollor SE
The main advantage of trading using opposite Origin Agritech and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| Origin Agritech vs. CARSALESCOM | Origin Agritech vs. Uber Technologies | Origin Agritech vs. GEELY AUTOMOBILE | Origin Agritech vs. Playtech plc |
| Bollor SE vs. MTI WIRELESS EDGE | Bollor SE vs. Caltagirone SpA | Bollor SE vs. BlueScope Steel Limited | Bollor SE vs. DFS Furniture PLC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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