Correlation Between Origin Agritech and Sixt SE
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Sixt SE 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 Sixt SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Sixt SE, you can compare the effects of market volatilities on Origin Agritech and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Sixt SE.
Diversification Opportunities for Origin Agritech and Sixt SE
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Origin and Sixt is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Origin Agritech i.e., Origin Agritech and Sixt SE go up and down completely randomly.
Pair Corralation between Origin Agritech and Sixt SE
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.45 times more return on investment than Sixt SE. However, Origin Agritech is 1.45 times more volatile than Sixt SE. It trades about -0.04 of its potential returns per unit of risk. Sixt SE is currently generating about -0.09 per unit of risk. If you would invest 246.00 in Origin Agritech on August 27, 2024 and sell it today you would lose (12.00) from holding Origin Agritech or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Sixt SE
Performance |
| Timeline |
| Origin Agritech |
| Sixt SE |
Origin Agritech and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Sixt SE
The main advantage of trading using opposite Origin Agritech and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc |
| Sixt SE vs. United Rentals | Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |