Correlation Between Origin Agritech and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Haleon PLC 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 Haleon PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Haleon PLC, you can compare the effects of market volatilities on Origin Agritech and Haleon PLC 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 Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Haleon PLC.
Diversification Opportunities for Origin Agritech and Haleon PLC
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and Haleon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC 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 Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of Origin Agritech i.e., Origin Agritech and Haleon PLC go up and down completely randomly.
Pair Corralation between Origin Agritech and Haleon PLC
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Haleon PLC. In addition to that, Origin Agritech is 2.3 times more volatile than Haleon PLC. It trades about -0.01 of its total potential returns per unit of risk. Haleon PLC is currently generating about 0.03 per unit of volatility. If you would invest 681.00 in Haleon PLC on September 4, 2024 and sell it today you would earn a total of 204.00 from holding Haleon PLC or generate 29.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Haleon PLC
Performance |
| Timeline |
| Origin Agritech |
| Haleon PLC |
Origin Agritech and Haleon PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Haleon PLC
The main advantage of trading using opposite Origin Agritech and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.| Origin Agritech vs. SMA Solar Technology | Origin Agritech vs. Aedas Homes SA | Origin Agritech vs. PKSHA TECHNOLOGY INC | Origin Agritech vs. Vishay Intertechnology |
| Haleon PLC vs. Superior Plus Corp | Haleon PLC vs. NMI Holdings | Haleon PLC vs. Origin Agritech | Haleon PLC vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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