Correlation Between Origin Agritech and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Qurate Retail 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 Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Qurate Retail Series, you can compare the effects of market volatilities on Origin Agritech and Qurate Retail 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 Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Qurate Retail.
Diversification Opportunities for Origin Agritech and Qurate Retail
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Origin and Qurate is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Qurate Retail Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail Series 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 Qurate Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qurate Retail Series has no effect on the direction of Origin Agritech i.e., Origin Agritech and Qurate Retail go up and down completely randomly.
Pair Corralation between Origin Agritech and Qurate Retail
Assuming the 90 days trading horizon Origin Agritech is expected to generate 0.9 times more return on investment than Qurate Retail. However, Origin Agritech is 1.11 times less risky than Qurate Retail. It trades about -0.03 of its potential returns per unit of risk. Qurate Retail Series is currently generating about -0.12 per unit of risk. If you would invest 262.00 in Origin Agritech on August 25, 2024 and sell it today you would lose (34.00) from holding Origin Agritech or give up 12.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Qurate Retail Series
Performance |
| Timeline |
| Origin Agritech |
| Qurate Retail Series |
Origin Agritech and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Qurate Retail
The main advantage of trading using opposite Origin Agritech and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Qurate Retail 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 Qurate Retail will offset losses from the drop in Qurate Retail's long position.| Origin Agritech vs. Mizuho Financial Group | Origin Agritech vs. Mitsui Chemicals | Origin Agritech vs. PT Bank Maybank | Origin Agritech vs. REVO INSURANCE SPA |
| Qurate Retail vs. eBay Inc | Qurate Retail vs. Superior Plus Corp | Qurate Retail vs. NMI Holdings | Qurate Retail vs. Origin Agritech |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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