Correlation Between Origin Agritech and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and MCEWEN MINING 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 MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and MCEWEN MINING INC, you can compare the effects of market volatilities on Origin Agritech and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and MCEWEN MINING.
Diversification Opportunities for Origin Agritech and MCEWEN MINING
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and MCEWEN is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Origin Agritech i.e., Origin Agritech and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Origin Agritech and MCEWEN MINING
Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.91 times less return on investment than MCEWEN MINING. In addition to that, Origin Agritech is 1.68 times more volatile than MCEWEN MINING INC. It trades about 0.01 of its total potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 per unit of volatility. If you would invest 660.00 in MCEWEN MINING INC on August 28, 2024 and sell it today you would earn a total of 160.00 from holding MCEWEN MINING INC or generate 24.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. MCEWEN MINING INC
Performance |
| Timeline |
| Origin Agritech |
| MCEWEN MINING INC |
Origin Agritech and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and MCEWEN MINING
The main advantage of trading using opposite Origin Agritech and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING'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 |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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