Correlation Between Origin Agritech and SIRIUS XM
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and SIRIUS XM 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 SIRIUS XM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and SIRIUS XM RADIO, you can compare the effects of market volatilities on Origin Agritech and SIRIUS XM 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 SIRIUS XM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and SIRIUS XM.
Diversification Opportunities for Origin Agritech and SIRIUS XM
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Origin and SIRIUS is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and SIRIUS XM RADIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIRIUS XM RADIO 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 SIRIUS XM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIRIUS XM RADIO has no effect on the direction of Origin Agritech i.e., Origin Agritech and SIRIUS XM go up and down completely randomly.
Pair Corralation between Origin Agritech and SIRIUS XM
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.52 times more return on investment than SIRIUS XM. However, Origin Agritech is 3.52 times more volatile than SIRIUS XM RADIO. It trades about 0.13 of its potential returns per unit of risk. SIRIUS XM RADIO is currently generating about 0.4 per unit of risk. If you would invest 176.00 in Origin Agritech on November 18, 2024 and sell it today you would earn a total of 28.00 from holding Origin Agritech or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Origin Agritech vs. SIRIUS XM RADIO
Performance |
| Timeline |
| Origin Agritech |
| SIRIUS XM RADIO |
Origin Agritech and SIRIUS XM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and SIRIUS XM
The main advantage of trading using opposite Origin Agritech and SIRIUS XM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, SIRIUS XM 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 SIRIUS XM will offset losses from the drop in SIRIUS XM's long position.| Origin Agritech vs. Siamgas And Petrochemicals | Origin Agritech vs. BRAGG GAMING GRP | Origin Agritech vs. Soken Chemical Engineering | Origin Agritech vs. Eastman Chemical |
| SIRIUS XM vs. RYU Apparel | SIRIUS XM vs. GUILD ESPORTS PLC | SIRIUS XM vs. SPORTING | SIRIUS XM vs. TITANIUM TRANSPORTGROUP |
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.
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