Correlation Between Origin Agritech and Fidelity America
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Fidelity America 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 Fidelity America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Fidelity America AD, you can compare the effects of market volatilities on Origin Agritech and Fidelity America 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 Fidelity America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Fidelity America.
Diversification Opportunities for Origin Agritech and Fidelity America
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Fidelity is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Fidelity America AD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity America 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 Fidelity America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity America has no effect on the direction of Origin Agritech i.e., Origin Agritech and Fidelity America go up and down completely randomly.
Pair Corralation between Origin Agritech and Fidelity America
Assuming the 90 days trading horizon Origin Agritech is expected to generate 4.94 times more return on investment than Fidelity America. However, Origin Agritech is 4.94 times more volatile than Fidelity America AD. It trades about 0.05 of its potential returns per unit of risk. Fidelity America AD is currently generating about 0.19 per unit of risk. If you would invest 220.00 in Origin Agritech on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Origin Agritech or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Origin Agritech vs. Fidelity America AD
Performance |
| Timeline |
| Origin Agritech |
| Fidelity America |
Origin Agritech and Fidelity America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Fidelity America
The main advantage of trading using opposite Origin Agritech and Fidelity America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Fidelity America 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 Fidelity America will offset losses from the drop in Fidelity America's long position.| Origin Agritech vs. MHP Hotel AG | Origin Agritech vs. G8 EDUCATION | Origin Agritech vs. STRAYER EDUCATION | Origin Agritech vs. DEVRY EDUCATION GRP |
| Fidelity America vs. Esfera Robotics R | Fidelity America vs. R co Valor F | Fidelity America vs. CM AM Monplus NE | Fidelity America vs. IE00B0H4TS55 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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