Correlation Between Origin Agritech and CryoLife
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and CryoLife 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 CryoLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and CryoLife, you can compare the effects of market volatilities on Origin Agritech and CryoLife 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 CryoLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and CryoLife.
Diversification Opportunities for Origin Agritech and CryoLife
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and CryoLife is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife 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 CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of Origin Agritech i.e., Origin Agritech and CryoLife go up and down completely randomly.
Pair Corralation between Origin Agritech and CryoLife
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the CryoLife. In addition to that, Origin Agritech is 2.4 times more volatile than CryoLife. It trades about -0.02 of its total potential returns per unit of risk. CryoLife is currently generating about 0.07 per unit of volatility. If you would invest 1,270 in CryoLife on August 26, 2024 and sell it today you would earn a total of 1,390 from holding CryoLife or generate 109.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. CryoLife
Performance |
| Timeline |
| Origin Agritech |
| CryoLife |
Origin Agritech and CryoLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and CryoLife
The main advantage of trading using opposite Origin Agritech and CryoLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, CryoLife 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 CryoLife will offset losses from the drop in CryoLife's long position.| Origin Agritech vs. ECHO INVESTMENT ZY | Origin Agritech vs. Penn National Gaming | Origin Agritech vs. HOCHSCHILD MINING | Origin Agritech vs. Strategic Investments AS |
| CryoLife vs. HK Electric Investments | CryoLife vs. REGAL ASIAN INVESTMENTS | CryoLife vs. Microchip Technology Incorporated | CryoLife vs. Apollo Investment Corp |
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.
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