Correlation Between Origin Agritech and Shyft
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Shyft 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 Shyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and The Shyft Group, you can compare the effects of market volatilities on Origin Agritech and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Shyft.
Diversification Opportunities for Origin Agritech and Shyft
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Shyft is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Origin Agritech i.e., Origin Agritech and Shyft go up and down completely randomly.
Pair Corralation between Origin Agritech and Shyft
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Shyft. In addition to that, Origin Agritech is 1.83 times more volatile than The Shyft Group. It trades about -0.01 of its total potential returns per unit of risk. The Shyft Group is currently generating about -0.02 per unit of volatility. If you would invest 2,289 in The Shyft Group on September 3, 2024 and sell it today you would lose (959.00) from holding The Shyft Group or give up 41.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. The Shyft Group
Performance |
| Timeline |
| Origin Agritech |
| Shyft Group |
Origin Agritech and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Shyft
The main advantage of trading using opposite Origin Agritech and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft'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 |
| Shyft vs. Hyster Yale Materials Handling | Shyft vs. Superior Plus Corp | Shyft vs. NMI Holdings | Shyft 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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