Correlation Between Origin Agritech and Intuit
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Intuit 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 Intuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Intuit Inc, you can compare the effects of market volatilities on Origin Agritech and Intuit 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 Intuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Intuit.
Diversification Opportunities for Origin Agritech and Intuit
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Intuit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc 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 Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of Origin Agritech i.e., Origin Agritech and Intuit go up and down completely randomly.
Pair Corralation between Origin Agritech and Intuit
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Intuit. In addition to that, Origin Agritech is 3.21 times more volatile than Intuit Inc. It trades about -0.01 of its total potential returns per unit of risk. Intuit Inc is currently generating about 0.05 per unit of volatility. If you would invest 40,232 in Intuit Inc on September 3, 2024 and sell it today you would earn a total of 20,668 from holding Intuit Inc or generate 51.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Intuit Inc
Performance |
| Timeline |
| Origin Agritech |
| Intuit Inc |
Origin Agritech and Intuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Intuit
The main advantage of trading using opposite Origin Agritech and Intuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Intuit 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 Intuit will offset losses from the drop in Intuit's long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| Intuit vs. Superior Plus Corp | Intuit vs. NMI Holdings | Intuit vs. Origin Agritech | Intuit 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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