Correlation Between Origin Agritech and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on Origin Agritech and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and FANDIFI TECHNOLOGY.
Diversification Opportunities for Origin Agritech and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of Origin Agritech i.e., Origin Agritech and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between Origin Agritech and FANDIFI TECHNOLOGY
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the FANDIFI TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Origin Agritech is 4.45 times less risky than FANDIFI TECHNOLOGY. The stock trades about 0.0 of its potential returns per unit of risk. The FANDIFI TECHNOLOGY P is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.15 in FANDIFI TECHNOLOGY P on August 31, 2024 and sell it today you would lose (2.10) from holding FANDIFI TECHNOLOGY P or give up 97.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Origin Agritech vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| Origin Agritech |
| FANDIFI TECHNOLOGY |
Origin Agritech and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and FANDIFI TECHNOLOGY
The main advantage of trading using opposite Origin Agritech and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| Origin Agritech vs. FORMPIPE SOFTWARE AB | Origin Agritech vs. PTT Global Chemical | Origin Agritech vs. Magic Software Enterprises | Origin Agritech vs. UPDATE SOFTWARE |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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