Correlation Between Origin Agritech and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Byggmax Group 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 Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Byggmax Group AB, you can compare the effects of market volatilities on Origin Agritech and Byggmax Group 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Byggmax Group.
Diversification Opportunities for Origin Agritech and Byggmax Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Byggmax is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Origin Agritech i.e., Origin Agritech and Byggmax Group go up and down completely randomly.
Pair Corralation between Origin Agritech and Byggmax Group
Assuming the 90 days trading horizon Origin Agritech is expected to generate 2.12 times less return on investment than Byggmax Group. In addition to that, Origin Agritech is 2.01 times more volatile than Byggmax Group AB. It trades about 0.02 of its total potential returns per unit of risk. Byggmax Group AB is currently generating about 0.09 per unit of volatility. If you would invest 235.00 in Byggmax Group AB on September 1, 2024 and sell it today you would earn a total of 130.00 from holding Byggmax Group AB or generate 55.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Origin Agritech vs. Byggmax Group AB
Performance |
| Timeline |
| Origin Agritech |
| Byggmax Group AB |
Origin Agritech and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Byggmax Group
The main advantage of trading using opposite Origin Agritech and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Byggmax Group 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Origin Agritech vs. CARSALESCOM | Origin Agritech vs. Uber Technologies | Origin Agritech vs. GEELY AUTOMOBILE | Origin Agritech vs. Playtech plc |
| Byggmax Group vs. CDN IMPERIAL BANK | Byggmax Group vs. PLAYTIKA HOLDING DL 01 | Byggmax Group vs. Seven West Media | Byggmax Group vs. Live Nation Entertainment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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