Correlation Between Origin Agritech and Lyxor 1
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Lyxor 1 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 Lyxor 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Lyxor 1 , you can compare the effects of market volatilities on Origin Agritech and Lyxor 1 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 Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Lyxor 1.
Diversification Opportunities for Origin Agritech and Lyxor 1
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and Lyxor is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 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 Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Origin Agritech i.e., Origin Agritech and Lyxor 1 go up and down completely randomly.
Pair Corralation between Origin Agritech and Lyxor 1
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Lyxor 1. In addition to that, Origin Agritech is 6.3 times more volatile than Lyxor 1 . It trades about -0.01 of its total potential returns per unit of risk. Lyxor 1 is currently generating about 0.02 per unit of volatility. If you would invest 2,318 in Lyxor 1 on August 31, 2024 and sell it today you would earn a total of 154.00 from holding Lyxor 1 or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Lyxor 1
Performance |
| Timeline |
| Origin Agritech |
| Lyxor 1 |
Origin Agritech and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Lyxor 1
The main advantage of trading using opposite Origin Agritech and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1's long position.| Origin Agritech vs. FORMPIPE SOFTWARE AB | Origin Agritech vs. PTT Global Chemical | Origin Agritech vs. Magic Software Enterprises | Origin Agritech vs. UPDATE SOFTWARE |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor 1 TecDAX | Lyxor 1 vs. Lyxor UCITS EuroMTS |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |