Correlation Between Origin Agritech and BARINGS DEVELOPED
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and BARINGS DEVELOPED 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 BARINGS DEVELOPED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and BARINGS DEVELOPED AND, you can compare the effects of market volatilities on Origin Agritech and BARINGS DEVELOPED 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 BARINGS DEVELOPED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BARINGS DEVELOPED.
Diversification Opportunities for Origin Agritech and BARINGS DEVELOPED
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and BARINGS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BARINGS DEVELOPED AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARINGS DEVELOPED AND 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 BARINGS DEVELOPED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARINGS DEVELOPED AND has no effect on the direction of Origin Agritech i.e., Origin Agritech and BARINGS DEVELOPED go up and down completely randomly.
Pair Corralation between Origin Agritech and BARINGS DEVELOPED
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the BARINGS DEVELOPED. In addition to that, Origin Agritech is 7.63 times more volatile than BARINGS DEVELOPED AND. It trades about -0.06 of its total potential returns per unit of risk. BARINGS DEVELOPED AND is currently generating about 0.11 per unit of volatility. If you would invest 738.00 in BARINGS DEVELOPED AND on December 1, 2024 and sell it today you would earn a total of 12.00 from holding BARINGS DEVELOPED AND or generate 1.63% 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. BARINGS DEVELOPED AND
Performance |
| Timeline |
| Origin Agritech |
| BARINGS DEVELOPED AND |
Origin Agritech and BARINGS DEVELOPED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and BARINGS DEVELOPED
The main advantage of trading using opposite Origin Agritech and BARINGS DEVELOPED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BARINGS DEVELOPED 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 BARINGS DEVELOPED will offset losses from the drop in BARINGS DEVELOPED's long position.| Origin Agritech vs. ROYAL ROAD MIN | Origin Agritech vs. BJs Restaurants | Origin Agritech vs. BII Railway Transportation | Origin Agritech vs. Transport International Holdings |
| BARINGS DEVELOPED vs. Groupama Entreprises N | BARINGS DEVELOPED vs. Renaissance Europe C | BARINGS DEVELOPED vs. Superior Plus Corp | BARINGS DEVELOPED 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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