Correlation Between Origin Agritech and Stewart Information
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Stewart Information 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 Stewart Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Stewart Information Services, you can compare the effects of market volatilities on Origin Agritech and Stewart Information 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 Stewart Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Stewart Information.
Diversification Opportunities for Origin Agritech and Stewart Information
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Stewart is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Stewart Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stewart Information 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 Stewart Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stewart Information has no effect on the direction of Origin Agritech i.e., Origin Agritech and Stewart Information go up and down completely randomly.
Pair Corralation between Origin Agritech and Stewart Information
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Stewart Information. In addition to that, Origin Agritech is 2.04 times more volatile than Stewart Information Services. It trades about -0.1 of its total potential returns per unit of risk. Stewart Information Services is currently generating about 0.07 per unit of volatility. If you would invest 6,650 in Stewart Information Services on August 29, 2024 and sell it today you would earn a total of 350.00 from holding Stewart Information Services or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Origin Agritech vs. Stewart Information Services
Performance |
| Timeline |
| Origin Agritech |
| Stewart Information |
Origin Agritech and Stewart Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Stewart Information
The main advantage of trading using opposite Origin Agritech and Stewart Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Stewart Information 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 Stewart Information will offset losses from the drop in Stewart Information'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 |
| Stewart Information vs. PICC Property and | Stewart Information vs. QBE Insurance Group | Stewart Information vs. Superior Plus Corp | Stewart Information 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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