Correlation Between Origin Agritech and ITALIAN WINE
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and ITALIAN WINE 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 ITALIAN WINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and ITALIAN WINE BRANDS, you can compare the effects of market volatilities on Origin Agritech and ITALIAN WINE 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 ITALIAN WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and ITALIAN WINE.
Diversification Opportunities for Origin Agritech and ITALIAN WINE
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Origin and ITALIAN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and ITALIAN WINE BRANDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITALIAN WINE BRANDS 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 ITALIAN WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITALIAN WINE BRANDS has no effect on the direction of Origin Agritech i.e., Origin Agritech and ITALIAN WINE go up and down completely randomly.
Pair Corralation between Origin Agritech and ITALIAN WINE
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.84 times more return on investment than ITALIAN WINE. However, Origin Agritech is 3.84 times more volatile than ITALIAN WINE BRANDS. It trades about 0.05 of its potential returns per unit of risk. ITALIAN WINE BRANDS is currently generating about 0.08 per unit of risk. If you would invest 187.00 in Origin Agritech on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Origin Agritech or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Origin Agritech vs. ITALIAN WINE BRANDS
Performance |
| Timeline |
| Origin Agritech |
| ITALIAN WINE BRANDS |
Origin Agritech and ITALIAN WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and ITALIAN WINE
The main advantage of trading using opposite Origin Agritech and ITALIAN WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, ITALIAN WINE 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 ITALIAN WINE will offset losses from the drop in ITALIAN WINE's long position.| Origin Agritech vs. Playtech plc | Origin Agritech vs. AAC TECHNOLOGHLDGADR | Origin Agritech vs. SCANDMEDICAL SOLDK 040 | Origin Agritech vs. ONWARD MEDICAL BV |
| ITALIAN WINE vs. Hawesko Holding AG | ITALIAN WINE vs. ANDREW PELLER LTD | ITALIAN WINE vs. NAKED WINES PLC | ITALIAN WINE vs. CHINA TONTINE WINES |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |