Correlation Between Origin Agritech and FF South
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and FF South 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 FF South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and FF South, you can compare the effects of market volatilities on Origin Agritech and FF South 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 FF South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and FF South.
Diversification Opportunities for Origin Agritech and FF South
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and IPGS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and FF South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF South 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 FF South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF South has no effect on the direction of Origin Agritech i.e., Origin Agritech and FF South go up and down completely randomly.
Pair Corralation between Origin Agritech and FF South
Assuming the 90 days trading horizon Origin Agritech is expected to generate 5.81 times more return on investment than FF South. However, Origin Agritech is 5.81 times more volatile than FF South. It trades about 0.03 of its potential returns per unit of risk. FF South is currently generating about 0.12 per unit of risk. If you would invest 192.00 in Origin Agritech on November 28, 2024 and sell it today you would lose (1.00) from holding Origin Agritech or give up 0.52% 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. FF South
Performance |
| Timeline |
| Origin Agritech |
| FF South |
Origin Agritech and FF South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and FF South
The main advantage of trading using opposite Origin Agritech and FF South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, FF South 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 FF South will offset losses from the drop in FF South's long position.| Origin Agritech vs. Computershare Limited | Origin Agritech vs. Hyster Yale Materials Handling | Origin Agritech vs. EAGLE MATERIALS | Origin Agritech vs. Martin Marietta Materials |
| FF South vs. Esfera Robotics R | FF South vs. R co Valor F | FF South vs. CM AM Monplus NE | FF South 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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