Correlation Between Origin Agritech and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Monster Beverage 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 Monster Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Monster Beverage Corp, you can compare the effects of market volatilities on Origin Agritech and Monster Beverage 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 Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Monster Beverage.
Diversification Opportunities for Origin Agritech and Monster Beverage
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Monster is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp 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 Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Origin Agritech i.e., Origin Agritech and Monster Beverage go up and down completely randomly.
Pair Corralation between Origin Agritech and Monster Beverage
If you would invest 0.00 in Monster Beverage Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Monster Beverage Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Origin Agritech vs. Monster Beverage Corp
Performance |
| Timeline |
| Origin Agritech |
| Monster Beverage Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Origin Agritech and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Monster Beverage
The main advantage of trading using opposite Origin Agritech and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage's long position.| Origin Agritech vs. 24SEVENOFFICE GROUP AB | Origin Agritech vs. MAVEN WIRELESS SWEDEN | Origin Agritech vs. SIDETRADE EO 1 | Origin Agritech vs. HK Electric Investments |
| Monster Beverage vs. Sumitomo Mitsui Construction | Monster Beverage vs. HYDROFARM HLD GRP | Monster Beverage vs. TITAN MACHINERY | Monster Beverage vs. WIMFARM SA EO |
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 CEOs Directory module to screen CEOs from public companies around the world.
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