Correlation Between Origin Agritech and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Korn Ferry 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 Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Korn Ferry, you can compare the effects of market volatilities on Origin Agritech and Korn Ferry 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 Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Korn Ferry.
Diversification Opportunities for Origin Agritech and Korn Ferry
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Korn is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry 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 Korn Ferry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korn Ferry has no effect on the direction of Origin Agritech i.e., Origin Agritech and Korn Ferry go up and down completely randomly.
Pair Corralation between Origin Agritech and Korn Ferry
Assuming the 90 days trading horizon Origin Agritech is expected to generate 9.63 times less return on investment than Korn Ferry. In addition to that, Origin Agritech is 3.66 times more volatile than Korn Ferry. It trades about 0.0 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.07 per unit of volatility. If you would invest 4,690 in Korn Ferry on August 31, 2024 and sell it today you would earn a total of 2,510 from holding Korn Ferry or generate 53.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Origin Agritech vs. Korn Ferry
Performance |
| Timeline |
| Origin Agritech |
| Korn Ferry |
Origin Agritech and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Korn Ferry
The main advantage of trading using opposite Origin Agritech and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Korn Ferry 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 Korn Ferry will offset losses from the drop in Korn Ferry's long position.| Origin Agritech vs. FORMPIPE SOFTWARE AB | Origin Agritech vs. PTT Global Chemical | Origin Agritech vs. Magic Software Enterprises | Origin Agritech vs. UPDATE SOFTWARE |
| Korn Ferry vs. Lion One Metals | Korn Ferry vs. GRIFFIN MINING LTD | Korn Ferry vs. Jacquet Metal Service | Korn Ferry vs. LION ONE METALS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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