Correlation Between Origin Agritech and SCANDMEDICAL SOLDK
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on Origin Agritech and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and SCANDMEDICAL SOLDK.
Diversification Opportunities for Origin Agritech and SCANDMEDICAL SOLDK
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and SCANDMEDICAL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of Origin Agritech i.e., Origin Agritech and SCANDMEDICAL SOLDK go up and down completely randomly.
Pair Corralation between Origin Agritech and SCANDMEDICAL SOLDK
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.24 times more return on investment than SCANDMEDICAL SOLDK. However, Origin Agritech is 1.24 times more volatile than SCANDMEDICAL SOLDK 040. It trades about 0.13 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about 0.07 per unit of risk. If you would invest 238.00 in Origin Agritech on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Origin Agritech or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| Origin Agritech |
| SCANDMEDICAL SOLDK 040 |
Origin Agritech and SCANDMEDICAL SOLDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and SCANDMEDICAL SOLDK
The main advantage of trading using opposite Origin Agritech and SCANDMEDICAL SOLDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK will offset losses from the drop in SCANDMEDICAL SOLDK's long position.| Origin Agritech vs. OAKTRSPECLENDNEW | Origin Agritech vs. Jacquet Metal Service | Origin Agritech vs. MCEWEN MINING INC | Origin Agritech vs. URBAN OUTFITTERS |
| SCANDMEDICAL SOLDK vs. Medtronic PLC | SCANDMEDICAL SOLDK vs. Stryker | SCANDMEDICAL SOLDK vs. Boston Scientific | SCANDMEDICAL SOLDK vs. Edwards Lifesciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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