Correlation Between Origin Agritech and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Synovus Financial 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 Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Synovus Financial Corp, you can compare the effects of market volatilities on Origin Agritech and Synovus Financial 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 Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Synovus Financial.
Diversification Opportunities for Origin Agritech and Synovus Financial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Synovus is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Synovus Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synovus Financial Corp 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 Synovus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synovus Financial Corp has no effect on the direction of Origin Agritech i.e., Origin Agritech and Synovus Financial go up and down completely randomly.
Pair Corralation between Origin Agritech and Synovus Financial
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.16 times less return on investment than Synovus Financial. In addition to that, Origin Agritech is 2.95 times more volatile than Synovus Financial Corp. It trades about 0.04 of its total potential returns per unit of risk. Synovus Financial Corp is currently generating about 0.12 per unit of volatility. If you would invest 2,644 in Synovus Financial Corp on August 26, 2024 and sell it today you would earn a total of 2,606 from holding Synovus Financial Corp or generate 98.56% 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. Synovus Financial Corp
Performance |
| Timeline |
| Origin Agritech |
| Synovus Financial Corp |
Origin Agritech and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Synovus Financial
The main advantage of trading using opposite Origin Agritech and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Synovus Financial 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 Synovus Financial will offset losses from the drop in Synovus Financial's long position.| Origin Agritech vs. Mizuho Financial Group | Origin Agritech vs. Mitsui Chemicals | Origin Agritech vs. PT Bank Maybank | Origin Agritech vs. REVO INSURANCE SPA |
| Synovus Financial vs. Superior Plus Corp | Synovus Financial vs. NMI Holdings | Synovus Financial vs. Origin Agritech | Synovus Financial 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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