Correlation Between Origin Agritech and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Tianjin Capital 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 Tianjin Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Tianjin Capital Environmental, you can compare the effects of market volatilities on Origin Agritech and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Tianjin Capital.
Diversification Opportunities for Origin Agritech and Tianjin Capital
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and Tianjin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Origin Agritech i.e., Origin Agritech and Tianjin Capital go up and down completely randomly.
Pair Corralation between Origin Agritech and Tianjin Capital
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Tianjin Capital. In addition to that, Origin Agritech is 1.92 times more volatile than Tianjin Capital Environmental. It trades about -0.04 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.01 per unit of volatility. If you would invest 38.00 in Tianjin Capital Environmental on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Tianjin Capital Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Origin Agritech |
| Tianjin Capital Envi |
Origin Agritech and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Tianjin Capital
The main advantage of trading using opposite Origin Agritech and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc | Origin Agritech vs. Apple Inc |
| Tianjin Capital vs. Superior Plus Corp | Tianjin Capital vs. NMI Holdings | Tianjin Capital vs. Origin Agritech | Tianjin Capital 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |