Correlation Between Origin Agritech and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Deutsche Bank 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 Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Origin Agritech and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Deutsche Bank.
Diversification Opportunities for Origin Agritech and Deutsche Bank
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Deutsche is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Origin Agritech i.e., Origin Agritech and Deutsche Bank go up and down completely randomly.
Pair Corralation between Origin Agritech and Deutsche Bank
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Deutsche Bank. In addition to that, Origin Agritech is 3.33 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about -0.01 of its total potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.07 per unit of volatility. If you would invest 1,111 in Deutsche Bank Aktiengesellschaft on November 19, 2024 and sell it today you would earn a total of 811.00 from holding Deutsche Bank Aktiengesellschaft or generate 73.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Origin Agritech |
| Deutsche Bank Aktien |
Origin Agritech and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Deutsche Bank
The main advantage of trading using opposite Origin Agritech and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. MACOM Technology Solutions | Origin Agritech vs. Sunny Optical Technology | Origin Agritech vs. Cogent Communications Holdings |
| Deutsche Bank vs. SAFEROADS HLDGS | Deutsche Bank vs. Fukuyama Transporting Co | Deutsche Bank vs. BROADWIND ENRGY | Deutsche Bank vs. Broadcom |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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