Correlation Between Origin Agritech and Roku
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Roku 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 Roku into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Roku Inc, you can compare the effects of market volatilities on Origin Agritech and Roku 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 Roku. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Roku.
Diversification Opportunities for Origin Agritech and Roku
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Roku is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Roku Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roku Inc 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 Roku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roku Inc has no effect on the direction of Origin Agritech i.e., Origin Agritech and Roku go up and down completely randomly.
Pair Corralation between Origin Agritech and Roku
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Roku. In addition to that, Origin Agritech is 1.21 times more volatile than Roku Inc. It trades about -0.06 of its total potential returns per unit of risk. Roku Inc is currently generating about -0.04 per unit of volatility. If you would invest 8,223 in Roku Inc on December 1, 2024 and sell it today you would lose (489.00) from holding Roku Inc or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Agritech vs. Roku Inc
Performance |
| Timeline |
| Origin Agritech |
| Roku Inc |
Origin Agritech and Roku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Roku
The main advantage of trading using opposite Origin Agritech and Roku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Roku 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 Roku will offset losses from the drop in Roku's long position.| Origin Agritech vs. ROYAL ROAD MIN | Origin Agritech vs. BJs Restaurants | Origin Agritech vs. BII Railway Transportation | Origin Agritech vs. Transport International Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |