Correlation Between Origin Agritech and Sino Land
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Sino Land 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 Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Sino Land, you can compare the effects of market volatilities on Origin Agritech and Sino Land 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 Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Sino Land.
Diversification Opportunities for Origin Agritech and Sino Land
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Sino is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Sino Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land 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 Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of Origin Agritech i.e., Origin Agritech and Sino Land go up and down completely randomly.
Pair Corralation between Origin Agritech and Sino Land
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Sino Land. In addition to that, Origin Agritech is 2.61 times more volatile than Sino Land. It trades about -0.04 of its total potential returns per unit of risk. Sino Land is currently generating about 0.04 per unit of volatility. If you would invest 92.00 in Sino Land on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Sino Land or generate 1.09% 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. Sino Land
Performance |
| Timeline |
| Origin Agritech |
| Sino Land |
Origin Agritech and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Sino Land
The main advantage of trading using opposite Origin Agritech and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Sino Land 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 Sino Land will offset losses from the drop in Sino Land's long position.| Origin Agritech vs. 24SEVENOFFICE GROUP AB | Origin Agritech vs. MAVEN WIRELESS SWEDEN | Origin Agritech vs. SIDETRADE EO 1 | Origin Agritech vs. HK Electric Investments |
| Sino Land vs. Lendlease Group | Sino Land vs. KENEDIX OFFICE INV | Sino Land vs. 24SEVENOFFICE GROUP AB | Sino Land vs. VARIOUS EATERIES LS |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |