Correlation Between Origin Agritech and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Polski Koncern 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 Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Polski Koncern Naftowy, you can compare the effects of market volatilities on Origin Agritech and Polski Koncern 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 Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Polski Koncern.
Diversification Opportunities for Origin Agritech and Polski Koncern
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Origin and Polski is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy 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 Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Origin Agritech i.e., Origin Agritech and Polski Koncern go up and down completely randomly.
Pair Corralation between Origin Agritech and Polski Koncern
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Polski Koncern. In addition to that, Origin Agritech is 1.84 times more volatile than Polski Koncern Naftowy. It trades about -0.01 of its total potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.06 per unit of volatility. If you would invest 599.00 in Polski Koncern Naftowy on September 3, 2024 and sell it today you would earn a total of 607.00 from holding Polski Koncern Naftowy or generate 101.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Origin Agritech |
| Polski Koncern Naftowy |
Origin Agritech and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Polski Koncern
The main advantage of trading using opposite Origin Agritech and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| Polski Koncern vs. Marathon Petroleum Corp | Polski Koncern vs. Neste Oyj | Polski Koncern vs. ENEOS Holdings | Polski Koncern vs. PTT OILRETBUS FOR BA10 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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