Correlation Between Origin Agritech and Marubeni
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Marubeni 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 Marubeni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Marubeni, you can compare the effects of market volatilities on Origin Agritech and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Marubeni.
Diversification Opportunities for Origin Agritech and Marubeni
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and Marubeni is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Origin Agritech i.e., Origin Agritech and Marubeni go up and down completely randomly.
Pair Corralation between Origin Agritech and Marubeni
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.01 times more return on investment than Marubeni. However, Origin Agritech is 3.01 times more volatile than Marubeni. It trades about 0.0 of its potential returns per unit of risk. Marubeni is currently generating about 0.0 per unit of risk. If you would invest 486.00 in Origin Agritech on September 1, 2024 and sell it today you would lose (244.00) from holding Origin Agritech or give up 50.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Origin Agritech vs. Marubeni
Performance |
| Timeline |
| Origin Agritech |
| Marubeni |
Origin Agritech and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Marubeni
The main advantage of trading using opposite Origin Agritech and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni's long position.| Origin Agritech vs. CARSALESCOM | Origin Agritech vs. Uber Technologies | Origin Agritech vs. GEELY AUTOMOBILE | Origin Agritech vs. Playtech plc |
| Marubeni vs. New Residential Investment | Marubeni vs. TROPHY GAMES DEV | Marubeni vs. OURGAME INTHOLDL 00005 | Marubeni vs. WisdomTree Investments |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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