Correlation Between Origin Agritech and Société Générale
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Société Générale 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 Société Générale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Socit Gnrale Socit, you can compare the effects of market volatilities on Origin Agritech and Société Générale 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 Société Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Société Générale.
Diversification Opportunities for Origin Agritech and Société Générale
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Société is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Société Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Origin Agritech i.e., Origin Agritech and Société Générale go up and down completely randomly.
Pair Corralation between Origin Agritech and Société Générale
Assuming the 90 days trading horizon Origin Agritech is expected to generate 3.94 times more return on investment than Société Générale. However, Origin Agritech is 3.94 times more volatile than Socit Gnrale Socit. It trades about 0.05 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.03 per unit of risk. If you would invest 182.00 in Origin Agritech on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Origin Agritech or generate 32.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Socit Gnrale Socit
Performance |
| Timeline |
| Origin Agritech |
| Socit Gnrale Socit |
Origin Agritech and Société Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Société Générale
The main advantage of trading using opposite Origin Agritech and Société Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Société Générale 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 Société Générale will offset losses from the drop in Société Générale'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 |
| Société Générale vs. Superior Plus Corp | Société Générale vs. NMI Holdings | Société Générale vs. Origin Agritech | Société Générale vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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