Correlation Between Origin Agritech and ANI Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and ANI Pharmaceuticals 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 ANI Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and ANI Pharmaceuticals, you can compare the effects of market volatilities on Origin Agritech and ANI Pharmaceuticals 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 ANI Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and ANI Pharmaceuticals.
Diversification Opportunities for Origin Agritech and ANI Pharmaceuticals
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Origin and ANI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals 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 ANI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANI Pharmaceuticals has no effect on the direction of Origin Agritech i.e., Origin Agritech and ANI Pharmaceuticals go up and down completely randomly.
Pair Corralation between Origin Agritech and ANI Pharmaceuticals
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the ANI Pharmaceuticals. In addition to that, Origin Agritech is 2.36 times more volatile than ANI Pharmaceuticals. It trades about 0.0 of its total potential returns per unit of risk. ANI Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest 3,660 in ANI Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 1,840 from holding ANI Pharmaceuticals or generate 50.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. ANI Pharmaceuticals
Performance |
| Timeline |
| Origin Agritech |
| ANI Pharmaceuticals |
Origin Agritech and ANI Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and ANI Pharmaceuticals
The main advantage of trading using opposite Origin Agritech and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, ANI Pharmaceuticals 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 ANI Pharmaceuticals will offset losses from the drop in ANI Pharmaceuticals' long position.| Origin Agritech vs. REINET INVESTMENTS SCA | Origin Agritech vs. AOYAMA TRADING | Origin Agritech vs. Japan Asia Investment | Origin Agritech vs. MAROC TELECOM |
| ANI Pharmaceuticals vs. CanSino Biologics | ANI Pharmaceuticals vs. Superior Plus Corp | ANI Pharmaceuticals vs. SIVERS SEMICONDUCTORS AB | ANI Pharmaceuticals vs. CHINA HUARONG ENERHD 50 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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