Correlation Between Origin Agritech and Hays Plc
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Hays 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 Hays 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 Hays plc, you can compare the effects of market volatilities on Origin Agritech and Hays 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 Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Hays Plc.
Diversification Opportunities for Origin Agritech and Hays Plc
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and Hays is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Hays plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hays 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 Hays Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hays plc has no effect on the direction of Origin Agritech i.e., Origin Agritech and Hays Plc go up and down completely randomly.
Pair Corralation between Origin Agritech and Hays Plc
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Hays Plc. In addition to that, Origin Agritech is 2.26 times more volatile than Hays plc. It trades about -0.02 of its total potential returns per unit of risk. Hays plc is currently generating about -0.01 per unit of volatility. If you would invest 126.00 in Hays plc on September 2, 2024 and sell it today you would lose (32.00) from holding Hays plc or give up 25.4% 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. Hays plc
Performance |
| Timeline |
| Origin Agritech |
| Hays plc |
Origin Agritech and Hays Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Hays Plc
The main advantage of trading using opposite Origin Agritech and Hays Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Hays 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 Hays Plc will offset losses from the drop in Hays Plc's long position.| Origin Agritech vs. CENTURIA OFFICE REIT | Origin Agritech vs. Ryanair Holdings plc | Origin Agritech vs. KENEDIX OFFICE INV | Origin Agritech vs. MAVEN WIRELESS SWEDEN |
| Hays Plc vs. National Bank Holdings | Hays Plc vs. SEI INVESTMENTS | Hays Plc vs. EAT WELL INVESTMENT | Hays Plc vs. SLR Investment Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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