Correlation Between Origin Agritech and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Expeditors International 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 Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Expeditors International of, you can compare the effects of market volatilities on Origin Agritech and Expeditors International 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 Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Expeditors International.
Diversification Opportunities for Origin Agritech and Expeditors International
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and Expeditors is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Origin Agritech i.e., Origin Agritech and Expeditors International go up and down completely randomly.
Pair Corralation between Origin Agritech and Expeditors International
Assuming the 90 days trading horizon Origin Agritech is expected to generate 5.24 times more return on investment than Expeditors International. However, Origin Agritech is 5.24 times more volatile than Expeditors International of. It trades about 0.01 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.02 per unit of risk. If you would invest 342.00 in Origin Agritech on August 29, 2024 and sell it today you would lose (108.00) from holding Origin Agritech or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Expeditors International of
Performance |
| Timeline |
| Origin Agritech |
| Expeditors International |
Origin Agritech and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Expeditors International
The main advantage of trading using opposite Origin Agritech and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.| Origin Agritech vs. Playtech plc | Origin Agritech vs. AAC TECHNOLOGHLDGADR | Origin Agritech vs. SCANDMEDICAL SOLDK 040 | Origin Agritech vs. ONWARD MEDICAL BV |
| Expeditors International vs. CARSALESCOM | Expeditors International vs. Dalata Hotel Group | Expeditors International vs. Tradeweb Markets | Expeditors International vs. TRADEGATE |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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