Correlation Between Origin Agritech and BerolinaCapital Premium
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and BerolinaCapital Premium 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 BerolinaCapital Premium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and BerolinaCapital Premium, you can compare the effects of market volatilities on Origin Agritech and BerolinaCapital Premium 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 BerolinaCapital Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and BerolinaCapital Premium.
Diversification Opportunities for Origin Agritech and BerolinaCapital Premium
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and BerolinaCapital is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and BerolinaCapital Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BerolinaCapital Premium 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 BerolinaCapital Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BerolinaCapital Premium has no effect on the direction of Origin Agritech i.e., Origin Agritech and BerolinaCapital Premium go up and down completely randomly.
Pair Corralation between Origin Agritech and BerolinaCapital Premium
Assuming the 90 days trading horizon Origin Agritech is expected to generate 9.46 times more return on investment than BerolinaCapital Premium. However, Origin Agritech is 9.46 times more volatile than BerolinaCapital Premium. It trades about 0.05 of its potential returns per unit of risk. BerolinaCapital Premium is currently generating about 0.12 per unit of risk. If you would invest 192.00 in Origin Agritech on November 28, 2024 and sell it today you would earn a total of 7.00 from holding Origin Agritech or generate 3.65% 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. BerolinaCapital Premium
Performance |
| Timeline |
| Origin Agritech |
| BerolinaCapital Premium |
Origin Agritech and BerolinaCapital Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and BerolinaCapital Premium
The main advantage of trading using opposite Origin Agritech and BerolinaCapital Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, BerolinaCapital Premium 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 BerolinaCapital Premium will offset losses from the drop in BerolinaCapital Premium's long position.| Origin Agritech vs. Computershare Limited | Origin Agritech vs. Hyster Yale Materials Handling | Origin Agritech vs. EAGLE MATERIALS | Origin Agritech vs. Martin Marietta Materials |
| BerolinaCapital Premium vs. BlackRock Global Funds | BerolinaCapital Premium vs. BGF Global Allocation | BerolinaCapital Premium vs. FF Global | BerolinaCapital Premium vs. Cobas Global PP |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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